Tungsten West has agreed terms with the National Wealth Fund on an investment of up to £71 million, completing the funding package to restart its Hemerdon tungsten and tin mine in Devon.
The UK Government fund will take an equity stake and provide debt financing, giving the state a direct interest in a domestic source of tungsten.
Tungsten is a critical mineral used across defence, aerospace, next-generation energy, and high-technology manufacturing.
John Healey, Chancellor of the Exchequer, said: “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.
“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.”
The equity element is worth £36 million, raised through 100 million new ordinary shares at 36p each. That gives the fund roughly 7.42% of Tungsten West.
Alongside the equity, the fund is providing a debt facility of up to £25 million, with a further uncommitted £10 million accordion.
Proceeds will fund the Hemerdon restart and repay the short-term loan facility announced in May.
As part of the deal, the UK Government has a limited window to negotiate an offtake agreement for up to half of Hemerdon’s tungsten production, as set out in the project’s 2025 feasibility study.
Under an accompanying relationship agreement, the fund can nominate one non-executive director, with a board observer in place until the appointment is made.
Tungsten West has already produced tungsten and tin concentrates over the past month and is conducting final completion testing, with production expected to begin in the third quarter of 2026. The company is also in advanced talks with a major downstream refiner over an offtake agreement. The restart is expected to create 350 direct jobs in the South West, a region that appears to be spearheading the UK’s metals extraction revival.