UK mining is set for a significant boost after the National Wealth Fund announced an investment of up to £71 million to support the restart of the Hemerdon tungsten and tin mine in Devon.
The funding will support Tungsten West with the construction, commissioning and processing costs required to bring the historic mine back into production. The project is also expected to strengthen the UK’s domestic supply of tungsten, a critical mineral used in industries including defence, aerospace and next generation energy.
The investment comprises a £36 million equity investment alongside up to £35 million in lending. The UK Government will also have an exclusive negotiation period over the potential procurement of up to 50 per cent of Hemerdon’s annual tungsten production.
Strengthening domestic supply
The development comes as governments and businesses look to strengthen access to critical minerals and reduce reliance on concentrated international supply chains.
Tungsten is particularly important because of its use across advanced industrial applications. The UK Government has identified the development of resilient domestic critical mineral supply chains as an important part of its wider economic and industrial strategy.
The National Wealth Fund said the investment would help secure a domestic source of tungsten while supporting the redevelopment of an important UK mining asset.
The move also follows the publication of the UK’s Vision 2035 Critical Minerals Strategy, which states that the critical minerals sector already contributes £1.79 billion to the UK economy and directly supports more than 50,000 jobs. The strategy also identifies more than 50 critical mineral projects across the country.
A new chapter for UK mining
The Hemerdon investment highlights the growing strategic importance of mining within the UK economy, particularly as demand rises for the raw materials needed to support advanced manufacturing, energy and defence.
Alongside direct investment in projects, the Government has also launched a £25 million Critical Minerals Accelerator to support innovation across extraction, processing and recycling. The programme is designed to help UK based projects scale innovative solutions and strengthen domestic supply chains.
For the UK mining industry, developments such as Hemerdon represent an opportunity to combine established natural resources with new investment, technology and a stronger focus on supply chain resilience.
With the National Wealth Fund backing the restart, the Devon project provides another indication of the growing role critical minerals are expected to play in the future of UK industry.
Source: National Wealth Fund
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