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Released February 19, 2025 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The future for the U.K.'s first tin mine in three decades looks brighter after the government's National Wealth Fund (NWF) took a big stake in the South Crofty mine in Pool, Cornwall.
The site, which has a mining history dating back 400 years, was shut in 1998 due to very low tin prices, but Canadian-owned firm Cornish Metals (Vancouver, Canada) is planning to reopen mining operations in 2027 now that the government has classed tin as a "critical mineral." A preliminary economic assessment (PEA) conducted at the mine in 2023 by Cornish Metals indicated that there are 49,310 tonnes of tin in the ground. The company estimated that with the price of tin sitting at US$31,000 per tonne, the project could be worth more than US$200 million over 14 years.
The NWF has agreed to a £28.6 million (US$35.4 million) direct equity investment into Cornish Metals to help finance the reopening of the South Crofty mine, which it said will help create 300 local jobs. It forms a key part of a £56 million (US$69 million) funding round to further de-risk the South Crofty project by "commencing early project works, placing orders on long-lead items and completing key work programmes including the shaft refurbishment and mine dewatering." The deal was hailed by the U.K.'s Chancellor of the Exchequer Rachel Reeves: "Growth is this Government's number one mission, and we're going further and faster to kick start our economy so that we can put more money in people's pockets. This is just the kind of investment that will help us do that, not only supporting the growth of the Cornish mining sector, but creating high-quality jobs and opportunities for the region and beyond."
John Flint, chief executive officer of NWF, commented: "Critical minerals are not only an important driver of the U.K.'s transition to net zero, but also of the U.K.'s growth mission, providing opportunities to anchor important supply chains in the U.K.. This is our second investment in critical minerals in Cornwall, and shows how we can mobilise private investment into local economies, creating skilled and long-term employment."
Don Turvey, chief executive of Cornish Metals, emphasised the importance of the investment and the revitalized role of tin in the current climate. "Tin is a critical mineral that is essential for the energy transition and anything electronic. South Crofty is a strategic asset with the ability to responsibly provide a secure, high grade long-term supply of tin, reviving Cornwall's rich mining history and contributing to the local economy and the U.K.'s transition to net zero. The Cornish Metals team has achieved many important milestones over the last couple of years as we rapidly advance South Crofty towards a restart of production." Industrial Info is tracking four key South Crofty projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
It is the second mining investment in Cornwall made by the NWF, following on from its support to Cornish Lithium (Cornwall, England), which is hoping to bring commercial scale lithium mining to the U.K.. In late 2023 it invested £24 million (US$30 million) in the company to help boost its workforce from 70 to 300, while advancing a number of its key projects: the United Downs geothermal lithium extraction project and its flagship Trelavour hard rock lithium project in the St. Austell region of Cornwall. It is estimated that the Trelavour hard rock mine could generate £800 million (US$991 million) of economic activity for the local economy over the planned 20-year mine life. Trelavour is expected to produce 10,000 tonnes of lithium hydroxide annually. The company opened the U.K.'s first low-emission, lithium hydroxide demonstration plant last year, allowing it to produce "battery-grade" lithium hydroxide samples from granite.
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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The site, which has a mining history dating back 400 years, was shut in 1998 due to very low tin prices, but Canadian-owned firm Cornish Metals (Vancouver, Canada) is planning to reopen mining operations in 2027 now that the government has classed tin as a "critical mineral." A preliminary economic assessment (PEA) conducted at the mine in 2023 by Cornish Metals indicated that there are 49,310 tonnes of tin in the ground. The company estimated that with the price of tin sitting at US$31,000 per tonne, the project could be worth more than US$200 million over 14 years.
The NWF has agreed to a £28.6 million (US$35.4 million) direct equity investment into Cornish Metals to help finance the reopening of the South Crofty mine, which it said will help create 300 local jobs. It forms a key part of a £56 million (US$69 million) funding round to further de-risk the South Crofty project by "commencing early project works, placing orders on long-lead items and completing key work programmes including the shaft refurbishment and mine dewatering." The deal was hailed by the U.K.'s Chancellor of the Exchequer Rachel Reeves: "Growth is this Government's number one mission, and we're going further and faster to kick start our economy so that we can put more money in people's pockets. This is just the kind of investment that will help us do that, not only supporting the growth of the Cornish mining sector, but creating high-quality jobs and opportunities for the region and beyond."
John Flint, chief executive officer of NWF, commented: "Critical minerals are not only an important driver of the U.K.'s transition to net zero, but also of the U.K.'s growth mission, providing opportunities to anchor important supply chains in the U.K.. This is our second investment in critical minerals in Cornwall, and shows how we can mobilise private investment into local economies, creating skilled and long-term employment."
Don Turvey, chief executive of Cornish Metals, emphasised the importance of the investment and the revitalized role of tin in the current climate. "Tin is a critical mineral that is essential for the energy transition and anything electronic. South Crofty is a strategic asset with the ability to responsibly provide a secure, high grade long-term supply of tin, reviving Cornwall's rich mining history and contributing to the local economy and the U.K.'s transition to net zero. The Cornish Metals team has achieved many important milestones over the last couple of years as we rapidly advance South Crofty towards a restart of production." Industrial Info is tracking four key South Crofty projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
It is the second mining investment in Cornwall made by the NWF, following on from its support to Cornish Lithium (Cornwall, England), which is hoping to bring commercial scale lithium mining to the U.K.. In late 2023 it invested £24 million (US$30 million) in the company to help boost its workforce from 70 to 300, while advancing a number of its key projects: the United Downs geothermal lithium extraction project and its flagship Trelavour hard rock lithium project in the St. Austell region of Cornwall. It is estimated that the Trelavour hard rock mine could generate £800 million (US$991 million) of economic activity for the local economy over the planned 20-year mine life. Trelavour is expected to produce 10,000 tonnes of lithium hydroxide annually. The company opened the U.K.'s first low-emission, lithium hydroxide demonstration plant last year, allowing it to produce "battery-grade" lithium hydroxide samples from granite.
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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
