UK government to fund Hemerdon mine restart with 71 million pounds

Tungsten West has announced that the United Kingdom government intends to invest up to 71 million pounds, equivalent to 97 million US dollars, to restart production at the Hemerdon tungsten and tin mine in southwest England. The company, which is listed on the Alternative Investment Market, stated on Tuesday that the funding will be provided through the National Wealth Fund. This financial support is designed to return the site to full production capacity and establish a secure domestic source of tungsten, a critical mineral required for high-technology supply chains, aerospace, energy, and defence sectors.

John Healey, the Chancellor of the Exchequer, highlighted the strategic value of the project in a statement. He noted that the investment will supply vital minerals to British defence, energy, and aerospace businesses while preserving well-paid jobs within the country. Healey described the current global environment as more dangerous, emphasising the importance of backing British industry. He further stated that the nation is tapping into one of the world’s largest tungsten deposits, located in Devon approximately 300 kilometres southwest of London. This move underscores the strategic importance of Hemerdon as Western nations seek to reduce their reliance on imported critical metals, particularly in the context of China’s dominance in global supply and its recent imposition of export controls.

Following the announcement, Tungsten West shares rose by approximately 17 per cent to 50.25 pence apiece on Wednesday in London. This price increase valued the firm at roughly 627 million pounds, or 852 million US dollars. The Hemerdon site holds significant resources, with a JORC-compliant estimate released in May 2025 indicating 163.7 million measured and indicated tonnes at 0.14 per cent tungsten trioxide. This contains 228,000 tonnes of tungsten trioxide. Additionally, the site holds 163.1 million inferred tonnes at 0.11 per cent tungsten trioxide, containing a further 170,000 tonnes of the mineral.

The investment has established a shareholder relationship agreement between Tungsten West and the National Wealth Fund. This arrangement grants the fund the opportunity to nominate one non-executive director to the company’s board. The funding enables the resumption of full production at Hemerdon and is expected to create 350 direct jobs. Jeff Court, the chief executive officer of Tungsten West, stated that with government support, the critical minerals produced at Hemerdon will underpin the United Kingdom’s national interests for the long term.

The company reported that tungsten and tin concentrate have already been produced at the site in the past month. Final tests are currently underway to commence full production within 2026. Tungsten West also disclosed that it is in negotiations with a major downstream tungsten refiner. The mine, formerly known as Drakelands or the Hemerdon Ball Mine, has a history of activity dating back to 1918, including production during both World Wars. Further exploration and feasibility work were conducted in the 1980s, and the site operated as a modern facility between August 2015 and October 2018 under Wolf Minerals. It is located 11 kilometres northeast of Plymouth, near the village of Plympton.