Tungsten West finally heads for production restart with £71 million investment from National Wealth Fund
Tungsten West, the mining company focused on restarting production at the Hemerdon tungsten and tin mine in Devon, UK, has announced that it has agreed terms with the National Wealth Fund (NWF), a wholly owned entity of the UK Government, regarding a proposed investment of up to £71 million, completing the funding package for the restart of Hemerdon to full production and supporting the development of a secure, domestic source of tungsten for the UK.
The proposed investment consists of an equity investment of £36 million via the subscription of 100 million new ordinary shares of £0.01 each in the capital of the company at a subscription price of 36 pence per share resulting in NWF holding approximately 7.42% of the voting rights of the enlarged issued ordinary share capital of Tungsten West; and a debt financing facility of up to £25 million plus a non-committed £10 million 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. Proceeds of the fundraising will be used to support the restart of the Hemerdon project and to repay a short-term loan facility, announced on 21 May 2026.
NWF’s proposed investment represents significant UK Government backing for the restart of Hemerdon and recognises the strategic importance of establishing a secure domestic supply of tungsten, a critical mineral essential to the UK’s manufacturing, high-technology supply chains, aerospace, next generation energy and defence programmes.
The company and NWF have entered into a shareholder relationship agreement, which includes the right for NWF to nominate one non-executive Director to the Board of the company, and a board observer until the Non-Executive Director is appointed. The appointed non-executive Director will be announced in due course.
Through the backing of the NWF and UK Government, Tungsten West says it is unlocking 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.
Tungsten West has already produced tungsten and tin concentrate in the previous month as part of the company’s re-start plans and is undertaking final completion testing in preparedness to start production within Q3 2026. In addition to this, the company is well advanced with significant offtake negotiations with a major down-stream tungsten refiner.
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.”
Jonathan Reynolds, Secretary of State for Business and Trade of the United Kingdom, said: “The National Wealth Fund’s investment is a major vote of confidence in our critical minerals sector and another step forward in the Prime Minister’s plan to reindustrialise Britain, which will support skilled jobs across Devon and unlock a new supply chain to power UK industry. 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.”
Jeff Court, CEO of Tungsten West, commented: “We are incredibly pleased to welcome the UK Government’s National Wealth Fund as a long-term equity partner in the development of the Hemerdon mine. 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. Hemerdon will be a long-term creator of economic benefits for the South West, including the generation of a significant number of direct and indirect jobs. Through the support of the UK Government, we are ensuring that critical minerals produced at Hemerdon will underpin the UK’s national interests for the long term.”
Oliver Holbourn, CEO of the National Wealth Fund, said: “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 National Wealth Fund’s investment is unlocking this domestic supply, and we are working closely with both Tungsten West and Government to ensure that this significant strategic asset can deliver for UK industry.”
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