UK Government Invests £71 Million to Reopen Hemerdon Mine

The Government of the United Kingdom is investing up to £71 million through the National Wealth Fund to restart the Hemerdon tungsten and tin mine in Devon. The funding package consists of £36 million for a 7% government stake and £35 million to resume production at the site, which has remained inactive since 2018.

In exchange for the capital, the government secured the right to ringfence 50% of the mine's production for domestic use within the defense, nuclear, and aerospace sectors. The investment follows a period of financial instability for the mine's operator, Tungsten West PLC, which previously faced insolvency. The move also responds to rising global tungsten prices driven by Chinese export restrictions.

Chancellor John Healey stated the investment bolsters British industry in a more dangerous world. The National Wealth Fund expects the project to support approximately 350 jobs. Business Secretary Jonathan Reynolds described the funding as a vote of confidence in the critical minerals sector.