Healey: £71m investment to reopen tungsten mine is ‘backing British industry’
John Healey has said Government investment in a tungsten mine in Devon will help bolster Britain’s defence and nuclear industries.
The Hemerdon tungsten and tin mine in Devon will receive up to £71 million from the National Wealth Fund to help restart operations at the mine on the outskirts of Plymouth.
The Government said it will have the right to ringfence 50% of production for use in Britain.
The Chancellor said it means Britain tapping into one of the world’s largest deposit of the mineral, which is also used in steel, electronics and aerospace industries.
Its hard-wearing and heat resistant nature makes it is widely used in machines and manufacturing.
The money will be split into a 7% stake for the Government for £36 million, and £35 million to help restart production.
Mr Healey 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.
“(This is) all part of this Government’s commitment to drive growth in every postcode, back British business and keep our country safe.”
Business Secretary Jonathan Reynolds said it was a “vote of confidence” in the UK’s critical minerals sector.
The National Wealth Fund said the investment would support about 350 jobs.
The mine has previously warned of its precarious financial position, and in 2023 Tungsten West warned it was on the brink of insolvency.
A year later it asked the Government for financial help to keep going after losing more than £10.3 million up to March 2024.
The Hemerdon mine stopped production in 2018 after its previous owner went into administration.
Tungsten was first discovered there in the 1960s.
The south west of England is home to the country’s largest minerals deposits, including lithium and tin.
The bulk of the world’s tungsten production comes from China.
Prices have risen since 2025 after export restrictions were announced by the Chinese government amid the ongoing tariff war between Beijing and the US.
Chief executive of Tungsten West Jeff Court said: “We are incredibly pleased to welcome the UK 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 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.
“Hemerdon will be a long-term creator of economic benefits for the South West, including the generation of a significant number of direct and indirect jobs.
“Through the support of the UK Government, we are ensuring that critical minerals produced at Hemerdon will underpin the UK’s national interests for the long term.”
