Tungsten West scores $97M UK investment

Tungsten West (AIM:TUN) announced that the UK Government will invest up to $97 million (£71 million) to restart production at Hemerdon tungsten and tin mine.

The equity and debt investment comes from the National Wealth Fund (NWF) and aims to get the mine back to full production and develop a secure domestic tungsten source, a critical mineral essential to high-technology supply chains, aerospace, energy and defence.

"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," John Healey, Chancellor of the Exchequer, said.

Tungsten West and NWF now have a shareholder relationship agreement, which gives the NWF the chance to nominate one non-executive director to the board of the company. The investment makes it possible for Tungsten West to resume full production at Hemerdon, producing tungsten and creating 350 direct jobs.

Production to resume soon

Tungsten and tin concentrate have already been produced in Hemerdon in this past month, the company said, as they conduct final tests to start production still in 2026. The company also said it is negotiating with a major down-stream tungsten refiner.

“Hemerdon is a world class, low cost and long-life tungsten and tin resource in the UK. 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," Jeff Court, CEO of Tungsten West, said. 

Bloomberg News reported that Hemerdon had faced difficulties to restart the mine due to cost overruns, volatile prices and funding constraints previously.

The company’s shares were up about 17% at 50.25 pence a share by 12:24 p.m. in London, valuing the firm at about £627 million, Bloomberg News reported.

(With files from Bloomberg News)