Tungsten West (LSE:TUN) has secured a proposed investment package worth up to £71 million from the UK Government’s National Wealth Fund, providing the financing required to support the restart of its Hemerdon tungsten and tin mine in Devon.
The proposed funding comprises a £36 million equity investment alongside a £25 million debt facility. The debt arrangement also includes an accordion option worth a further £10 million, potentially taking the National Wealth Fund’s total financial commitment to £71 million.
Tungsten West said the package will complete the funding required to bring Hemerdon back into full production. The agreement also provides for a limited negotiation period covering a potential UK Government offtake arrangement for as much as 50% of the mine’s forecast tungsten production.
Under the equity component of the transaction, the National Wealth Fund will acquire a 7.42% interest in Tungsten West. The investment will also provide the fund with board representation and certain governance rights, further strengthening the relationship between the company and the UK Government.
The commitment represents significant government support for Hemerdon as the UK seeks to increase domestic access to strategically important critical minerals. Tungsten is used across a range of industrial and technological applications, including defence, aerospace, advanced manufacturing and next-generation energy technologies.
Tungsten West has already produced concentrate as part of preparations to restart Hemerdon and is targeting the commencement of production during the third quarter of 2026. Once operating at scale, the project is expected to strengthen domestic tungsten supply while reducing the UK’s exposure to international supply-chain disruption.
Government ministers have positioned the investment as part of the UK’s wider critical minerals strategy and efforts to encourage domestic industrial development. Hemerdon is also expected to provide an economic boost to Devon, with hundreds of direct jobs anticipated once the operation reaches its planned production profile.
For Tungsten West, the proposed investment substantially reduces the financing uncertainty surrounding the mine restart while strengthening Hemerdon’s strategic relevance within the UK critical minerals sector. A potential government offtake agreement could provide an additional link between domestic mineral production and strategically important UK industries.
The company nevertheless continues to face elevated financial risk. Tungsten West has recorded ongoing losses and cash outflows, while its FY2025 position included negative equity and increased debt. Recent share-price momentum has been considerably stronger, although conventional valuation measures remain difficult to interpret while the business is loss-making and does not provide a dividend yield.
About Tungsten West Plc
Tungsten West Plc is a UK mining company focused on restoring commercial production at the Hemerdon tungsten and tin mine in Devon.
Hemerdon contains a large, long-life tungsten and tin resource and is regarded as one of the world’s largest tungsten deposits. The project is being developed as a potential domestic source of a mineral considered strategically important to UK manufacturing, aerospace, defence, energy and advanced technology supply chains.
Restarting the mine is expected to create approximately 350 direct jobs while supporting additional economic activity across the South West of England. The project also forms part of wider efforts to improve the resilience of UK critical mineral supply chains and reduce dependence on overseas sources.
Through the redevelopment of Hemerdon, Tungsten West is seeking to establish a long-term domestic tungsten operation capable of supporting both UK industrial requirements and the country’s broader critical minerals and reindustrialisation objectives.
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