The National Wealth Fund (NWF), a wholly owned subsidiary of the UK Government, has agreed to invest up to £71m in Tungsten West to restart production at the Hemerdon tungsten and tin mine in Devon.

The proposed investment comprises an equity investment of £36m via the subscription of 100 million new ordinary shares, a debt facility of up to £25m and a non-committed £10m accordion facility.

The UK Government will also be provided with a limited period to conclude an offtake agreement for up to 50% of Hemerdon’s 2025 feasibility study tungsten production.

The Government said NWF’s proposed investment represents significant backing for the restart of the mine, recognising the strategic importance of establishing a secure domestic supply of tungsten.

It also noted that it is a crucial mineral essential to the UK’s manufacturing, high-technology supply chains, aerospace, next generation energy and defence programmes.

The Government and NWF said its backing will allow Tungsten West to unlock a “critical supply of tungsten”, supporting economic growth in the South West of England, through the creation of 350 direct jobs while strengthening UK supply chain resilience.

Following the investment announcement, shares in Tungsten West increased by over 18%.

Chancellor of the Exchequer, John Healey, 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."

Tungsten West’s CEO, Jeff Court, added: "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."

---