The chancellor has announced that more than £70m of public money will be invested in a mining company to help restart production at the Hemerdon tungsten and tin mine near Plymouth. The National Wealth Fund will provide up to £71m to Tungsten West so the site can resume operations. Chancellor John Healey said the move would let Britain tap into one of the world's largest deposits of tungsten, a mineral used in steel, electronics and aerospace. The government said it would ringfence 50% of the mine's production for use in Britain.
The financing is made up of a £36m equity investment alongside up to £35m of lending to help Tungsten West restart production. The National Wealth Fund said the funding supports its continued growth and renewal of mining in south-west England, building on its most recent investment in Cornish Metals to help reopen South Crofty tin mine in January 2025.
Healey 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."
Oliver Holbourn, chief executive of the National Wealth Fund, said Hemerdon had the "largest deposits of tungsten in the world right on our doorstep". He added that increasing demand for tungsten was being driven by its use in defence, aerospace, next generation energy and electronics.
Jeff Court, chief executive of Tungsten West, called the mine a "world class, low cost and long life tungsten and tin resource". He said: "It is extremely important to us that we prioritise UK requirements for this critical metal to support domestic demand. 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."
Court said the government support was ensuring critical minerals produced at the mine would underpin the UK's national interests for the "long term". The company said the existing infrastructure and previously operating mine meant competitive costs and a shorter route to production. Its target is to "ramp up to full scale production" in 2027.
Business secretary Jonathan Reynolds said the investment was a "major vote of confidence" in the critical minerals sector and a step forward in the Prime Minister's plans to "reindustrialise Britain", while supporting skilled jobs across Devon.
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Government Pledges £71m to Reopen Tungsten Mine