UK backs Devon tungsten mine with £71m stake

The British government’s National Wealth Fund announced a £71 million injection into mining company Tungsten West to bring the long‑closed Hemerdon mine in Devon back into production.

Funding package and ownership

The deal combines a £36 million share purchase, giving the state a 7.4 per cent equity stake and a seat on the board, with a £25 million loan facility. In return, the Treasury will secure the right to purchase up to half of the mine’s future tungsten output.

“This investment will supply vital minerals to British defence, energy and aerospace businesses, and keep good, well‑paid jobs in the UK.”, John Healey

Why the injection matters

Wolfram, the metal extracted at Hemerdon, is essential for high‑performance alloys used in defence systems, aerospace engines and next‑generation energy technologies. By supporting domestic production, the government hopes to safeguard supply chains and create roughly 350 direct jobs in the South West.

Jeff Court, chief executive of Tungsten West, said the company’s focus is on “prioritising UK requirements for this critical metal to support domestic demand, including strategic initiatives across defence and next generation energy.” The funding will finance new processing equipment, cover day‑to‑day project costs and fund the workforce needed to reach full metal output.

Next steps and wider policy context

The London‑listed firm plans to have the government’s shares formally listed on the market on 27 August, with mining operations slated to restart in the third quarter. The investment follows other National Wealth Fund commitments, such as the £599 million package announced under former chancellor Rachel Reeves for Rolls‑Royce Small Modular Reactors in partnership with Great British Energy and Czech utility CEZ. Those projects aim to crowd in private capital and create thousands of jobs, illustrating the fund’s role in de‑risking high‑tech, high‑capital ventures.

Analysts note that while the injection bolsters a strategic supply chain, the broader investment climate remains sensitive to tax policy and regulatory stability, a point highlighted in recent commentary on UK tax creep and its impact on private investment.