UK Government Takes Stake in Tungsten Mine With £71m Mine Bet
The government’s National Wealth Fund is set to pump £71m into miner Tungsten West in a bid to help reopen the Hemerdon mine in Devon. The funding package combines a £36m share purchase, which will hand the government a 7.4 per cent stake in Tungsten and a seat on the board of directors, and a £25m loan facility. The project is expected to boost the local economy in the South West of England…
The UK government's National Wealth Fund is investing £71 million in Tungsten West, a miner specializing in tungsten, tin, and secondary aggregates. The funding includes a 36 million pound share purchase, granting the government a 7.4 percent stake in the company and a board seat. Along with the investment, the government will gain the option to purchase up to half of the mine's future tungsten output.
This move aims to bolster the local economy in South West England by creating 350 direct jobs. The government's investment is intended to supply vital minerals to British defense, energy, and aerospace businesses, supporting domestic demand for tungsten and contributing to strategic initiatives in these sectors. Tungsten West, based in Plympton, Devon, is set to restart mining operations in the third quarter of the year, following a full redesign of its processing layout and securing new environmental permits.
The company will use the capital to rebuild and upgrade processing equipment, cover project costs, and fund labor and operations necessary for full metal production.
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