The National Wealth Fund has announced an investment of up to £71 million in Tungsten West, a mining company focused on restarting the Hemerdon tungsten and tin mine at Plympton.

The financing consists of a £36 million equity investment alongside up to £35 million of lending, supporting Tungsten West with the construction, commissioning and processing costs associated with restarting production.

Tungsten West is confident it will be in full production by early 2027.

The company has already recruited more than 100 employees, and has a target to employ an additional 250 people by the first three months of next year.

The investment by the National Wealth Fund, which is owned by the treasury and uses public money to act as a catalyst for private investment, also unlocks an exclusive negotiation period giving the government the right to procure up to 50% of the mine’s tungsten production.

This will secure a vital domestic supply of Tungsten and reduce the UK’s reliance on imports.

Hemerdon is the one of the world’s largest tungsten resources, making it a strategic UK asset capable of providing a secure domestic supply of the mineral.

Recent export controls have reinforced the importance of diversifying sources of supply for UK industry, with global Tungsten demand driven by its critical applications in defence, aerospace, next generation energy and electronics.

Hemerdon mine benefits from substantial existing infrastructure and a previously operating mine, resulting in competitive costs and a shorter route to production.

The National Wealth Fund’s investment in Tungsten West supports the continued growth and renewal of mining in the South West, building on the Fund’s most recent investment in Cornish Metals and helping to develop a critical minerals cluster in the region that is promoting the reindustrialisation of the UK, it said.

John Healey, 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.”

Jeff Court, CEO of Tungsten West, commented: “We are incredibly pleased to welcome the National Wealth Fund as a long-term equity partner in the development of the Hemerdon mine.

“Hemerdon is a world class, low cost and long-life tungsten and tin resource in the UK. It 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.”

He said it would be “a long-term creator of economic benefits for the South West”.

Tungsten West said recently it was committed to hiring a significant proportion of its workforce from the local area and would be meeting with neighbouring Plympton residents, and regulators as part of an “enhanced programme of stakeholder engagement” to ensure they are informed of the timing, scope and staged nature of the commissioning.”

The company acquired the mine through a receivership process in 2019 following the collapse of the previous operator, Wolf Minerals, in 2018.