The UK Government is backing the restart of the Hemerdon tungsten mine with up to £71 million, while seeking access to as much as half of its annual production for domestic requirements.
The UK Government is moving to secure a domestic supply of tungsten for defence, aerospace and energy applications through the planned restart of the Hemerdon mine near Plymouth, with negotiations covering the right to procure up to 50% of its annual tungsten production, the UK Defence Journal understands.
The National Wealth Fund has announced an investment of up to £71 million in Tungsten West, comprising £36 million of equity and as much as £35 million in lending, to support construction, commissioning and processing work needed to bring the mine back into operation. The investment also provides the Government with an exclusive negotiation period for an offtake agreement covering up to half of the tungsten production identified in Tungsten West’s 2025 feasibility study, although the National Wealth Fund’s formal announcement says that procurement agreement is being negotiated separately.
Luke Pollard, MP for Plymouth Sutton and Devonport, went further in comments published alongside the announcement, saying: “When we’re improving the readiness and resilience of our national security, critical minerals like tungsten are at the heart of that effort.”
Pollard added: “I’m proud that the Labour government is backing British and has secured 50% of the output from the mine. This is fantastic news for jobs in Plymouth and is a huge boost for our national security.”
Pollard’s wording presents the Government’s position as having secured half of Hemerdon’s output, while the National Wealth Fund describes the current arrangement more precisely as an exclusive negotiation period giving the Government the right to seek procurement of up to 50% of annual production. The final offtake agreement is being handled separately by the Government, meaning the detailed commercial terms have not yet been set out publicly.
Hemerdon, on the outskirts of Plymouth, contains one of the world’s largest known tungsten resources and has previously operated as a mine, leaving substantial infrastructure already in place. Tungsten West is targeting a ramp-up to full-scale production in the first quarter of 2027, with the existing mine infrastructure expected to provide a shorter route back into production than would be possible with a completely new development.
Tungsten has particular strategic value because of its hardness, density and ability to retain its properties at very high temperatures, characteristics which make it useful across defence, aerospace, electronics and energy industries. Military applications include specialised alloys, tooling and components required to withstand high mechanical and thermal stresses, while wider industrial demand has increased concern over dependence on overseas sources.
The proposed offtake arrangement would therefore give the Government a route to securing a substantial proportion of Hemerdon’s output for British requirements, reducing exposure to external supply disruption. The National Wealth Fund said recent export controls affecting global mineral markets had reinforced the importance of diversifying supply, particularly for materials with applications across defence and other strategically important industries.
Chancellor of the Exchequer John Healey said, as quoted in a National Wealth Fund news update: “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. We are tapping into one of the largest deposits of tungsten in the world, right here in the UK.”
He added: “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.”
Business Secretary Jonathan Reynolds described the investment as part of the Government’s Critical Minerals Strategy, saying: “The National Wealth Fund’s investment is a major vote of confidence in our critical minerals sector and another step forward in the Prime Minister’s plan to reindustrialise Britain, which will support skilled jobs across Devon and unlock a new supply chain to power UK industry.”
The Hemerdon project is expected to support around 350 direct jobs once fully operational, while the investment forms part of a wider effort to rebuild mining and critical-minerals capacity in the South West. The National Wealth Fund has also invested in Cornish Metals, with both projects contributing to a developing regional cluster around minerals considered important to industrial resilience and national security.
National Wealth Fund chief executive Oliver Holbourn said: “There is strong and increasing global demand for Tungsten, supported by its strategic applications in defence, next generation energy and aerospace. In Hemerdon, the UK has one of the largest deposits of tungsten in the world right on our doorstep.”
He continued: “The National Wealth Fund’s investment is unlocking this domestic supply, and we are working closely with both Tungsten West and Government to ensure that this significant strategic asset can deliver for UK industry.”
Tungsten West chief executive Jeff Court said the company intended to prioritise British requirements as production returns, describing Hemerdon as a 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, including strategic initiatives across defence and next generation energy.”
Positive news; I just wish the UK government did this with all critical raw materials found in the UK and create strategic reserves (even if it makes a loss).