Hemerdon’s existing mine and processing infrastructure are central to Tungsten West’s restart plan.
Tungsten West has agreed terms for up to £71 million of backing from the UK National Wealth Fund (NWF), completing the core financing package required to restart the Hemerdon tungsten and tin mine in Devon.
The package gives the UK government a potential stake in one of the world’s largest tungsten resources while opening an exclusive negotiation period for an offtake agreement covering up to 50% of Hemerdon’s tungsten production outlined in the company’s 2025 Feasibility Study.
Tungsten West is targeting a production restart within the third quarter of 2026. The company said it produced tungsten and tin concentrate last month, marking a further step toward the planned return to commercial operations.
The deal places Hemerdon at the centre of the UK’s effort to build a domestic critical minerals supply chain in 2026, particularly for materials used in defence, aerospace, electronics and next-generation energy systems.
£71 million package combines equity and debt
The NWF financing is structured to provide both long-term equity support and debt capacity for the restart.
| Component | Amount | Key terms |
|---|---|---|
| Equity investment | £36 million | 100 million new shares at 36 pence each |
| NWF shareholding | Approximately 7.42% | Based on Tungsten West’s enlarged voting rights |
| Committed debt facility | Up to £25 million | To support restart and processing requirements |
| Accordion facility | Up to £10 million | Non-committed additional debt capacity |
| Total potential support | Up to £71 million | Equity plus committed and accordion debt |
| Potential government offtake | Up to 50% | Based on tungsten production in the 2025 Feasibility Study |
The £36 million equity subscription will give the NWF approximately 7.42% of Tungsten West’s enlarged voting rights. The investment also provides the government with representation on the company’s board.
The debt component includes a committed facility of up to £25 million and a further £10 million non-committed accordion facility. The latter would provide additional flexibility if required, subject to further agreement.
Tungsten West said the funds will support construction, commissioning and processing costs associated with bringing Hemerdon back into operation. The package will also be used to repay a short-term loan facility arranged earlier in the year.
The funding follows earlier bridge and shareholder-backed financing that helped maintain the project while Tungsten West pursued a larger restart package. The NWF agreement gives the company greater visibility over the capital needed to move from development and commissioning toward production.
Government seeks domestic tungsten supply
Under the agreement, the UK government has a limited period to conclude an offtake agreement for up to half of Hemerdon’s tungsten production, as set out in the 2025 feasibility work.
The offtake agreement is being negotiated separately from the financing. If completed, it would give UK industry a direct supply channel from a mine located near Plymouth, while providing Tungsten West with a potential anchor customer for a significant share of its future output.
Tungsten is used in cemented carbides, cutting tools, mining equipment, high-temperature applications, electronics and defence systems. Its hardness, density and high melting point make substitution difficult across several industrial uses.
The supply chain is also heavily concentrated. China has historically accounted for more than 80% of global tungsten supply, according to information published by Tungsten West. Export controls and China’s changing position in the global tungsten market have increased pressure on manufacturers and governments to secure alternative sources.
John Healey, Chancellor of the Exchequer, said the investment would support British defence, energy and aerospace businesses while creating skilled employment.
“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.”
Business Secretary Jonathan Reynolds described the financing as a vote of confidence in the UK critical minerals sector.
“This is our Critical Minerals Strategy in action: doubling down on projects like Tungsten West’s which will boost our economic resilience, strengthen supply chains and drive good growth in the South West and across the UK.”
Hemerdon restart uses existing infrastructure
Hemerdon is not a greenfield mining project. Tungsten West acquired the site from the former operator, Wolf Minerals, in 2019 and is working to restart an operation that previously produced tungsten and tin concentrate.
The project benefits from existing infrastructure, including crushing circuits, a processing plant, power supply, site offices and access roads. Tungsten West has said that more than US$300 million was previously invested in the site.
That infrastructure provides a shorter route to production than a project requiring a mine, processing plant and supporting facilities to be built from the ground up. It does not, however, remove the execution risks associated with recommissioning equipment, improving plant performance and achieving stable recovery rates.
Processing infrastructure is expected to support Hemerdon’s route back to production.
The company’s near-term priorities include completing capital improvement works, commissioning the processing circuits and progressing the mine and plant toward a sustained operating rate.
Tungsten West has set a restart target within Q3 2026, with full-scale production expected to follow as the operation ramps up. The sequencing will be closely watched by investors and potential customers because the timing of first concentrate, plant stability and steady-state production will determine when the project begins contributing meaningful supply.
Strategic role extends beyond the mine gate
The NWF investment reflects a broader shift in how governments are approaching mining finance. Public capital is increasingly being used not only to support project development, but also to secure supply rights and provide confidence to private investors.
Oliver Holbourn, chief executive of the National Wealth Fund, said Hemerdon could help unlock a domestic source of a mineral with strategic applications.
“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.”
The project is also expected to support approximately 350 direct jobs once fully operational. Those roles would span mining, processing, maintenance, engineering, environmental management and site administration, with additional employment expected through contractors and regional suppliers.
The government’s involvement links Hemerdon to a wider effort to develop a critical minerals cluster in the South West. The NWF has also backed Cornish Metals, creating a potential regional network of projects supplying materials needed by UK manufacturing and infrastructure.
For policymakers, the investment offers an opportunity to connect mineral production with industrial strategy. For operators and investors, it provides a test of whether public-private financing can move a previously operating mine back into reliable production within a strategically important timeframe.
Execution remains the central risk
The financing removes a major obstacle, but it does not eliminate the operational challenges associated with Hemerdon.
The mine must demonstrate that its processing plant can consistently produce saleable tungsten and tin concentrate at the rates assumed in the feasibility study. Commissioning and ramp-up can expose problems involving equipment reliability, ore variability, recovery performance, water management and operating costs.
Tungsten West CEO Jeff Court said the company viewed the NWF as a long-term equity partner and would prioritise UK requirements for the metal.
“Hemerdon is a world class, low cost and long-life tungsten and tin resource in the UK. 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.”
The next milestones for the market will therefore include the completion of financing conditions, drawdown of the debt facilities, continued commissioning activity, production consistency and progress on the government’s potential offtake agreement.
A government-linked offtake could improve revenue visibility, but the commercial terms will matter. Key questions include pricing, product specifications, delivery schedules, treatment arrangements and the portion of output available to other industrial customers.
Concentrate quality and processing performance will be key indicators during the restart.
Why the deal matters for the tungsten market
Hemerdon’s restart would add a significant non-Chinese source to a market where supply diversification has become a policy priority.
The project’s importance is not based only on the size of its resource. Its location, existing infrastructure and potential access to UK industrial customers give it strategic value at a time when defence manufacturers, aerospace companies and advanced engineering businesses are reassessing exposure to concentrated supply chains.
The project will still need to prove commercial performance. But the NWF agreement changes Hemerdon’s position from a financed restart candidate to a publicly supported development moving toward production.
For the UK, the immediate objective is to establish a domestic tungsten supply line. For Tungsten West, the challenge is to convert the £71 million package into a safe, reliable and economically sustainable operation.
The outcome will be closely followed across the broader critical minerals supply chain 2026, as governments and industrial buyers look for projects capable of delivering strategic metals from within trusted jurisdictions.
Read more on tungsten’s role in critical mineral supply chains, Tungsten West’s Hemerdon project, and Skillings’ coverage of critical minerals supply chain developments.
Mine commissioning will determine how quickly Hemerdon can move from funding to sustained output.