The U.K. government, through its National Wealth Fund (NWF), plans to invest up to US$97 million (£71 million) to restart production at the Hemerdon tungsten and tin mine in southwest England, operated by Tungsten West (AIM: TUN), the company said on Tuesday.

The package combines equity and debt and is intended to return the mine to full production while developing a secure domestic source of tungsten — a critical mineral essential to high-technology supply chains, aerospace, energy and defence. Tungsten is prized for its extreme hardness and the highest melting point of any metal, properties that underpin its use in cutting tools, wear-resistant components and electronics.

"This investment will supply vital minerals to British defence, energy and aerospace businesses – and keep good, well-paid jobs in the U.K.," John Healey, Chancellor of the Exchequer, said in a release. Hemerdon is located in Devon, roughly 300 km southwest of London.

"We are living in a more dangerous world, which is why backing British industry is more important than ever before. We are tapping into one of the largest deposits of tungsten in the world, right here in the U.K.," Healey added.

Strategic metal

The investment underscores Hemerdon's strategic importance as one of the world's largest tungsten resources, at a time when Britain and other Western countries are seeking to reduce their reliance on imports of the critical metal. China dominates global tungsten supply and imposed export controls last year. Tungsten appears on the critical minerals lists maintained by the U.K., the United States and the European Union.

Shares of Tungsten West gained about 17% to 50.25 pence apiece on Wednesday in London, valuing the company at about £627 million (US$852 million).

According to a JORC-compliant resource released in May 2025, Hemerdon hosts 163.7 million measured and indicated tonnes at 0.14% tungsten trioxide (WO₃), containing 228,000 tonnes of WO₃, as well as 163.1 million inferred tonnes at 0.11% WO₃ containing 170,000 tonnes of WO₃.

Shareholder agreement

Tungsten West and the NWF, the government-backed investment institution tasked with mobilizing capital into U.K. infrastructure and industry, have entered into a shareholder relationship agreement that gives the fund the opportunity to nominate one non-executive director to the company's board. The investment enables Tungsten West to resume full production at Hemerdon and to create 350 direct jobs.

"Through the support of the U.K. government, we are ensuring that critical minerals produced at Hemerdon will underpin the U.K.'s national interests for the long term," Tungsten West CEO Jeff Court said.

Production to resume

Tungsten and tin concentrate have already been produced at Hemerdon in the past month, the company said, as it conducts final tests with the aim of starting production still in 2026. Tungsten West also said it is negotiating with a major downstream tungsten refiner, the link that would carry Hemerdon's concentrate to end markets.

The mine, formerly known as Drakelands, or the Hemerdon Ball or Hemerdon Bal Mine, has a history of activity dating to 1918, including production during both World Wars, according to the company. Further exploration and feasibility work was carried out in the 1980s. The site was later developed into a modern operation and produced tungsten and tin between August 2015 and October 2018 under Wolf Minerals.

Hemerdon is located 11 km northeast of Plymouth, near the village of Plympton.

Source: The Northern Miner