U.K. Mining its Own Tungsten Critical Mineral

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The U.K. government is backing the restart of the Hemerdon tungsten mine as it seeks to tap into one of the largest deposits of the critical mineral.

Vital Funding for a Needed Critical Mineral

The U.K. government is heavily financing the reopening of the Hemerdon tungsten mine as it seeks to reinvigorate its own critical minerals industry.

The government, via its National Wealth Fund (NWF), has agreed to total funding of £71 million (US$96 million), comprising a £36 million (US$49 million) equity investment alongside up to £35 million (US$48 million) of lending to help Tungsten West in Devon restart production. In return the Government will secure the rights to procure 50% of its annual tungsten production, a critical mineral essential defence, aerospace and energy applications. Hemerdon stopped production in 2018 but according to the NWF it "is one of the world's largest tungsten resources, making it a strategic U.K. asset capable of providing a secure domestic supply of the mineral." With China controlling 80% of the world's tungsten supply, the U.K. along with the European Union (EU) wants to finance more local critical minerals projects. According to Industrial Info Resources data there are https://iir.link/zdvgxn" target="_blank">70 mining-related projects in the U.K. worth just under US$10 billion in investment. 

Government Take

"We are living in a more dangerous world, which is why backing British industry is more important than ever before," said Chancellor of the Exchequer John Healey. "That is what this deal does. We are tapping into one of the largest deposits of tungsten in the world, right here in the U.K..This investment will supply vital minerals to British defence, energy and aerospace businesses - and keep good, well-paid jobs in the UK." Jonathan Reynolds, Secretary of State for Business and Trade of the United Kingdom, 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 U.K. 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."

Critical Minerals Strategy

The U.K. relies heavily on imports of critical minerals and the government has admitted that even with increased domestic supplies it will remain reliant on imports. It launched its Critical Minerals Strategy last summer setting out its targets going forward, including limiting imports of any critical mineral from a single country to no more than 60% by 2035. In addition, it calls for at  least 10% of annual U.K. demand for critical minerals in the aggregate to be met through domestic production (primary extraction, processing and refining of critical minerals) by 2035. At least 50,000 tonnes of lithium (or lithium carbonate equivalent) will be produced domestically by 2035 and 20% of total annual U.K. demand for critical minerals will be met through recycling of products to recover critical minerals over the same timeframe. 

Reaction to Hemerdon Investment

Brokers Hannam & Partners told Interactive Investor that tungsten markets were strong, with the Rotterdam-listed price up by about 500% year-on-year due to increased demand and reduced Chinese exports. "This funding package materially de-risks the restart timeline and reinforces Hemerdon's strategic importance as a domestic source of tungsten against a backdrop of tighter Chinese exports and declining Western stockpiles," it stated. Jeff Court, chief executive officer of Tungsten West, commented: "We are incredibly pleased to welcome the U.K. Government's 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 U.K.. 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." 

Related Investments

In June, Industrial Info Resources reported that the developers behind the U.K.'s first lithium hydroxide refinery claimed that it will bring £2.1 billion (US$2.8 billion) to the U.K. economy, create 1,700 jobs during its construction and reduce the U.K. and Europe's battery supply chain's dependence on China. For additional information, see June 30, 2026, article - U.K.'s First Lithium Refinery Will Add $2.8 Billion To Economy. Last year, the NWF took a big stake in the South Crofty mine in Pool, Cornwall, the country's first new tin mine in more than 30 years. For additional information, see February 19, 2025, article - Government Backs U.K.'s First New Tin Mine. It is the second mining investment in Cornwall made by the NWF, following on from its support to Cornish Lithium (Cornwall, England) in 2023, which is hoping to bring commercial scale lithium mining to the U.K..

Key Takeaways

• The U.K. government is financially backing the restart of the Hemerdon tungsten mine to build its domestic supplies of critical minerals.
• It classifies Hemerdon as "one of the world's largest tungsten resources, making it a strategic U.K. asset." 
• According to Industrial Info Resources data there are https://iir.link/zdvgxn" target="_blank">70 mining-related projects in the U.K. worth just under US$10 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).