The Labour Government’s National Wealth Fund is investing up to £71 million to restart one of the world’s largest tungsten resources, supporting British industry, strengthening national security and creating hundreds of jobs in Devon.
The investment in Tungsten West will help bring the Hemerdon tungsten and tin mine, on the outskirts of Plymouth, back into full production.
The financing package includes a £36 million equity investment and lending of up to £35 million. It will help cover the construction, commissioning and processing costs associated with restarting the mine.
The agreement also gives the UK Government an exclusive period in which to negotiate the purchase of up to 50 per cent of Hemerdon’s forecast annual tungsten production.
Tungsten is classed as a critical mineral because of its importance to defence, aerospace, electronics, advanced manufacturing and next-generation energy. Establishing a domestic supply will reduce Britain’s reliance on imports and strengthen the resilience of strategically important supply chains.
The Hemerdon project is expected to support around 350 direct jobs once fully operational, bringing skilled employment and investment to Plymouth and the wider South West.
Chancellor John Healey said: “We are living in a more dangerous world, which is why backing British industry is more important than ever before.”
Healey said the agreement would help supply British defence, energy and aerospace businesses with vital minerals while supporting well-paid jobs and delivering economic growth across the country.
Posting on social media, he described the agreement as being about “British resources, British jobs, British security”.
The National Wealth Fund’s investment will give it an approximately 7.4 per cent stake in Tungsten West. The company has already produced tungsten and tin concentrate as part of its restart programme and is preparing to begin production during the third quarter of 2026, with full-scale production targeted for early 2027.
Business Secretary Jonathan Reynolds described the investment as a major vote of confidence in Britain’s critical-minerals sector and an important part of the Government’s plan to reindustrialise the country.
He said reopening Hemerdon would support skilled jobs across Devon, establish a new domestic supply chain and improve Britain’s economic resilience.
The investment also builds on the National Wealth Fund’s support for Cornish Metals and plans to reopen the South Crofty tin mine, helping to develop a wider critical-minerals cluster across the South West.
National Wealth Fund chief executive Oliver Holbourn said growing global demand for tungsten reflected its importance to defence, aerospace and next-generation energy.
Tungsten West chief executive Jeff Court welcomed the Government as a long-term partner, describing Hemerdon as a world-class, low-cost and long-life tungsten and tin resource.
He said the mine would prioritise British demand for the critical mineral and generate significant long-term economic benefits for communities across the South West.
The agreement is the latest example of Labour using the National Wealth Fund to bring together economic growth and national security by investing directly in British resources, businesses, supply chains and skilled employment.
