The National Wealth Fund, a government investment vehicle, has committed £71m to support Tungsten West’s operations at the Hemerdon mine located in Devon. The funding comprises a £36m equity investment that provides the government with a 7.4 per cent ownership stake and board representation, alongside a £25m loan facility. Additionally, the government will hold the right to purchase up to half of the mine’s tungsten production going forward.
Tungsten West, headquartered in Plympton in Devon, specializes in extracting tungsten, tin, and secondary aggregates. The company acquired the Hemerdon site in 2019, following its closure in October 2018 when the previous operator, Australian firm Wolf Minerals, entered liquidation. Since taking ownership, Tungsten West has undertaken a comprehensive redesign of processing infrastructure and obtained necessary environmental authorizations. The latest capital injection is designated to fund equipment upgrades, operational expenses, and staffing requirements to achieve full production capacity.
The investment is expected to generate approximately 350 direct employment opportunities in the South West region and strengthen supply chains for domestic defence, energy, and aerospace sectors. According to the company, mining operations are scheduled to resume in the third quarter, with the government’s shareholding to be formally listed on the stock exchange on 27 August. The initiative represents part of a broader government strategy to utilize the National Wealth Fund for advancing priorities in critical industries, including a previously announced £599m financing package for Rolls-Royce Small Modular Reactors that is anticipated to create around a thousand jobs.
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