A major investment in the Hemerdon tungsten and tin mine near Plymouth is set to support the return of one of the UK’s most significant critical minerals projects, with the National Wealth Fund committing up to £71 million to Tungsten West.
The project, located on the outskirts of Plymouth, is expected to create around 350 direct jobs once fully operational and strengthen the South West’s role in the UK’s critical minerals sector. The mine is targeting a return to full-scale production in the first quarter of 2027.
Hemerdon is one of the largest known tungsten resources in the world and is regarded as a nationally significant asset. As demand for tungsten continues to increase across defence, aerospace, electronics and next-generation energy industries, the project will play an important role in improving the resilience of UK supply chains and reducing reliance on imported material.
The funding package from the National Wealth Fund includes a £36 million equity investment and up to £35 million in debt financing. The capital will support the work needed to bring the site back into operation, including construction, commissioning and processing activities.
The investment also provides a period of exclusive negotiation giving the UK Government the right to procure up to 50% of the mine’s tungsten production.
Luke Pollard MP, Member of Parliament for Plymouth Sutton and Devonport, said:
“When we’re improving the readiness and resilience of our national security, critical minerals like tungsten are at the heart of that effort.
“I’m proud that the Labour government is backing British and has secured 50% of the output from the mine. This is fantastic news for jobs in Plymouth and is a huge boost for our national security.”
Rt Hon John Healey MP, 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.”
Rt Hon Jonathan Reynolds MP, Secretary of State for Business, Innovation, Science and Trade, 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.”
Fred Thomas MP, Member of Parliament for Plymouth Moor View, said:
“This is good news for Plymouth as well as for the UK’s supply chain security. It’s a further example of this Government stepping in to back jobs and growth in our region.
“For the UK, mining and owning our own critical minerals is wise.”
With extensive existing infrastructure already in place and the advantages of a previously operating mine, Hemerdon is considered well positioned to return to production on a competitive basis and within a shorter development timeframe than many new mining projects.
The investment follows the National Wealth Fund’s wider support for critical minerals development in the South West and is expected to contribute to the growth of a regional cluster of strategically important mining and processing businesses. Alongside supporting domestic supply of critical minerals, the project is expected to generate long-term economic benefits for Plymouth, Devon and the wider South West.