National Wealth Fund invests £71m in Tungsten West to unlock critical UK tungsten supply

The National Wealth Fund has announced an investment of up to £71 million in Tungsten West, a mining company focused on restarting the Hemerdon tungsten and tin mine on the outskirts of Plymouth in Devon.

The financing consists of a £36 million equity investment alongside up to £35 million of lending, supporting Tungsten West with the construction, commissioning and processing costs associated with restarting production.

John Healey, Chancellor of the Exchequer, said: “We are living in a more dangerous world, which is why backing British industry is more important than ever before. That is what this deal does. We are tapping into one of the largest deposits of tungsten in the world, right here in the UK.

“This investment will supply vital minerals to British defence, energy and aerospace businesses and keep good, well-paid jobs in the UK. All part of this Government’s commitment to drive growth in every postcode, back British business and keep our country safe.”

How the investment will reduce the UK’s reliance on imports of tungsten

The investment also unlocks an exclusive negotiation period giving UK Government the right to procure up to 50% of the mine’s tungsten production, stated in its 2025 Feasibility Study, securing a vital domestic supply of tungsten and reducing the UK’s reliance on imports. The offtake agreement is being negotiated separately by UK Government.

Business Secretary Jonathan Reynolds said: “The National Wealth Fund’s investment is a major vote of confidence in our critical minerals sector and another step forward in the Prime Minister’s plan to reindustrialise Britain, which will support skilled jobs across Devon and unlock a new supply chain to power UK industry.

“This is our Critical Minerals Strategy in action, doubling down on projects like Tungsten West’s which will boost our economic resilience, strengthen supply chains and drive good growth in the South West and across the UK.”

Sovereign supply from one of the world’s largest sources of tungsten

Hemerdon is one of the world’s largest tungsten resources, making it a strategic UK asset capable of providing a secure domestic supply of the mineral.

Recent export controls have reinforced the importance of diversifying sources of supply for UK industry, with global tungsten demand driven by its critical applications in defence, aerospace, next generation energy and electronics.

Today’s investment secures the UK’s own sovereign capability, while investing in local infrastructure to bring jobs and opportunity to the South West.

The Hemerdon mine benefits from substantial existing infrastructure and a previously operating mine, resulting in competitive costs and a shorter route to production. Tungsten West is targeting ramp up to full scale production in Q1 2027.

Generating jobs and economic benefits for the South West of England

Jeff Court, CEO of Tungsten West, said: “We are incredibly pleased to welcome the UK Government’s National Wealth Fund as a long-term equity partner in the development of the Hemerdon mine. Hemerdon is a world class, low cost and long-life tungsten and tin resource in the UK.

“It is extremely important to us that we prioritise UK requirements for this critical metal to support domestic demand, including strategic initiatives across defence and next generation energy.

“Hemerdon will be a long-term creator of economic benefits for the South West, including the generation of a significant number of direct and indirect jobs. Through the support of the UK Government, we are ensuring that critical minerals produced at Hemerdon will underpin the UK’s national interests for the long term.”

The National Wealth Fund’s investment in Tungsten West supports the continued growth and renewal of mining in the South West, building on the Fund’s most recent investment in Cornish Metals and helping to develop a critical minerals cluster in the region that is promoting the reindustrialisation of the UK.

The Hemerdon project is expected to support around 350 direct jobs once fully operational, bringing employment and opportunity to the surrounding communities.

Oliver Holbourn, National Wealth Fund CEO, said: “There is strong and increasing global demand for Tungsten, supported by its strategic applications in defence, next generation energy and aerospace. In Hemerdon, the UK has one of the largest deposits of tungsten in the world right on our doorstep.

“The National Wealth Fund’s investment is unlocking this domestic supply and we are working closely with both Tungsten West and Government to ensure that this significant strategic asset can deliver for UK industry.”