National Wealth Fund backs Tungsten West with 71 million pound investment

The National Wealth Fund has committed 71 million pounds to Tungsten West, a mining firm preparing to resume operations at the Hemerdon site near Plymouth. This financial support, comprising 36 million pounds in equity and up to 35 million pounds in debt, is intended to cover the costs of construction, commissioning and processing required to restart production. The state-backed investor, which acts on behalf of the UK government, aims to secure domestic supply of critical minerals and reduce reliance on imports.

Business Secretary Jonathan Reynolds described the agreement as a significant step forward in the prime minister’s strategy to reindustrialise Britain. He stated that the investment represents a major vote of confidence in the critical minerals sector and supports the government’s Critical Minerals Strategy. Reynolds noted that the project will boost economic resilience, strengthen supply chains and drive growth in the South West. Chancellor of the Exchequer John Healey added that the move will supply vital minerals to British defence, energy and aerospace businesses while maintaining well-paid jobs in the UK.

Tungsten is classified as a critical mineral with applications in advanced solar cells, wind turbines, aerospace and defence industries. Lighter wind blades made from tungsten alloys are being explored for high-speed operation, and the metal serves as a back contact material in thin-film solar cells. The Hemerdon site is known to hold one of the world’s largest tungsten resources. This investment follows a recent deal with Cornish Metals, as the fund seeks to develop a critical minerals cluster in Devon and Cornwall. The government will hold a right to procure up to 50 per cent of Hemerdon’s annual production once the facility is operational.

Tungsten West plans to reach full-scale production in the first quarter of 2027. The project is expected to support approximately 350 direct jobs when active. Reynolds previously stated in 2024 that the fund would accelerate investment in green technologies shortly after its launch. The latest deal underscores the government’s focus on developing a robust domestic supply chain to power UK industry and support skilled employment across the region.