{"id":750730,"date":"2026-08-26T21:52:11","date_gmt":"2026-08-26T21:52:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/750730\/"},"modified":"2026-08-26T21:52:11","modified_gmt":"2026-08-26T21:52:11","slug":"uk-government-takes-stake-in-tungsten-mine-with-71m-mine-bet","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/750730\/","title":{"rendered":"UK Government Takes Stake in Tungsten Mine With \u00a371m Mine Bet"},"content":{"rendered":"

The government\u2019s National Wealth Fund<\/a> is set to pump \u00a371m into miner Tungsten West in a bid to help reopen the Hemerdon mine in Devon.<\/p>\n

The funding package combines a \u00a336m share purchase, which will hand the government a 7.4 per cent stake in Tungsten and a seat on the board of directors, and a \u00a325m loan facility.<\/p>\n

The project is expected to boost the local economy in the South West of England through the creation of 350 direct jobs.<\/p>\n

In addition to financial backing, the government will gain the option to buy up to half of the mine\u2019s future tungsten output.<\/p>\n

John Healey, the Chancellor, said: \u201cThis investment will supply vital minerals to British defence, energy and aerospace businesses \u2013 and keep good, well-paid jobs in the UK.\u201d<\/p>\n

Tungsten West, which is headquartered in Plympton in Devon, specialises in the mining and extraction of tungsten, tin and secondary aggregates \u2013 which are the by-products of other industrial processes.<\/p>\n

\u201cIt 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,\u201d Jeff Court, chief executive of Tungsten West, said.<\/p>\n

Mining operations to restart in third quarter<\/p>\n

The Hemerdon Mine, which previously operated as Drakelands Mine, was closed in October 2018 after its previous operator, Australian firm Wolf Minerals, went into liquidation. Tungsten West acquired the site in 2019 and subsequently spent years completely redesigning the processing layout and securing new environmental permits.<\/p>\n

The fresh capital is set to help the firm rebuild and upgrade processing equipment on-site, cover day-to-day project costs, and fund labor and operations needed to reach full metal production.<\/p>\n

The London-listed firm said the UK government\u2019s shares would be formally listed on the stock market on 27 August, with mining operations restarting in the third quarter.<\/p>\n

It marks the latest utilisation of the National Wealth Fund to advance the government\u2019s agenda in key markets, including defence and energy.<\/p>\n

During Rachel Reeves\u2019 stint as Chancellor, the policy bank revealed a \u00a3599m financing package for Rolls-Royce Small Modular Reactors<\/a> (SMR) in a bid to kick-start delivery on its project with Great British Energy.<\/p>\n

The capital injection from the taxpayer-backed wealth fund is designed to de-risk the project for private lenders, through effectively using public money to \u201ccrowd in\u201d billions in additional investment from the City and international markets.<\/p>\n

Around a thousand jobs are tipped to be created at Rolls-Royce SMR, which is co-owned by the FTSE 100 giant and Czech power company CEZ<\/a>, through the funding.<\/p>\n

By City AM<\/a><\/p>\n

More Top Reads From Oilprice.com<\/p>\n

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