UK government invests in Hemerdon mine restart

Tungsten West has secured a government investment of up to 71 million pounds to resume operations at the Hemerdon tungsten and tin mine in Devon. The funding, provided through the National Wealth Fund, is designed to restore the site to full production capacity and establish a secure domestic supply of critical minerals. These resources are essential for high-technology supply chains, aerospace, energy and defence sectors. The announcement prompted a significant rise in the company’s share price on the London Stock Exchange.

The investment creates a shareholder relationship between Tungsten West and the National Wealth Fund. This agreement allows the fund to nominate one non-executive director to the company’s board. The financial support enables the resumption of full production at Hemerdon, which is expected to generate 350 direct jobs. The mine has a long history of supplying tungsten for military efforts during the First and Second World Wars. Production continued intermittently through the mid-20th century before the site closed in 1944.

John Healey, Chancellor of the Exchequer, stated that the investment will supply vital minerals to British defence, energy and aerospace businesses. He added that the project supports the government’s commitment to driving growth and backing British business. Jeff Court, the company’s chief executive, described Hemerdon as a world-class, low-cost and long-life resource. He noted that the government’s support ensures the critical minerals produced there will underpin national interests for the long term.

Tungsten West reported that tungsten and tin concentrate have already been produced at the site in the past month. The company is conducting final tests to begin production within 2026 and is negotiating with a major downstream tungsten refiner. Bloomberg News previously reported that the mine faced difficulties restarting due to cost overruns, volatile prices and funding constraints. By 12:24 p.m. in London, shares were up about 17 per cent at 50.25 pence, valuing the firm at approximately 627 million pounds. The company announced it will restart production by the third quarter of this year.