The owner of the vast open pit tungsten and tin mine at Hemerdon, Plymouth, has struck a £1.4bn "landmark" deal with a US manufacturer of tungsten products.
Plymouth-based Tungsten West has entered into an eight-year supply and offtake agreement with Elmet Technologies, part of Elmet Group.
Under the terms of the deal, the AIM-listed company will supply Elmet with 1,000 tonnes a year of contained tungsten oxide from the Hemerdon mine near Plympton, which is one of the largest tungsten resources in the world.
Blair McDougall, minister for reindustrialisation for the UK, said the announcement would help "crucial sectors" such as defence and clean energy in both countries to get the minerals "they need".
"This is our Critical Minerals Strategy in action – forging ambitious international partnerships that strengthen our economic security and help build more resilient, sustainable critical minerals supply chains," he said.
In August, the government's National Wealth Fund confirmed it would inject £71m into Tungsten West in a bid to support the reopening of the Hemerdon mine.
Tungsten West took ownership of Hemerdon in 2019 and has since invested years completely reconfiguring the processing layout and obtaining fresh environmental permits.
Earlier this month, the company announced the mine had entered production and that ore was being processed through its plant.
Jeffery Court, chief executive of Tungsten West, said the agreement with Elmet was a "major step" in establishing the mine as "a strategically important source" of tungsten for the Western world.
"It establishes a long-term supply relationship between Hemerdon and one of America's leading vertically integrated tungsten businesses at a time when both the United States and United Kingdom are placing increasing strategic importance on securing resilient supplies of critical minerals," he said.
"Hemerdon is uniquely positioned to provide substantial, long-term tungsten production from within the United Kingdom.
"With production now underway, the support of the UK Government through the National Wealth Fund and this long-term commercial agreement with Elmet, we are building a mine-to-market supply chain capable of supporting the critical mineral requirements of the UK, US and their allies."
Peter V. Anania, chief executive and chair of Elmet Group, said the "landmark" deal advanced the US firm's strategy to "build a resilient supply chain for the US and allied nations".
“The Elmet Group and Tungsten West are firmly aligned in our commitment to securing domestic and allied production, supply, and consistency for customers across the full breadth of critical end markets," he added.
Devon Mining Firm Signs £1.4bn Deal With US Manufacturer