Tungsten West Surges as UK Backs Restart of Historic Mine
Shares of British mining company Tungsten West Plc jumped on August 25 after, according to Bloomberg, the company secured up to £71 million (approximately $97 million) in UK government funding to restart the historic Hemerdon tin-tungsten mine in Devon.
Following the announcement, the London-listed company's shares surged 17%, reaching their highest level in nearly four years.
The financing package, consisting of both debt and equity, was provided by the UK National Wealth Fund. The government expects the project to strengthen domestic supplies of critical minerals and reduce the country's dependence on imports.
The Hemerdon mine was historically one of the UK's largest sources of tin and tungsten. Tin is widely used in solder for the electronics industry, while tungsten is a critical metal for tool steels, high-strength alloys, and defense applications.
The project has faced repeated attempts at revival over the past several years but was hindered by cost overruns, volatile commodity prices, and funding shortages. Its outlook improved significantly after China—the world's largest tungsten supplier—introduced export restrictions on the metal, driving prices higher and prompting Western governments to accelerate efforts to secure alternative sources of critical minerals.
The company said it produced its first batch of tin-tungsten concentrate in July and expects to begin commercial production in the third quarter of 2026.
Andrievskii Verdict
The Tungsten West story illustrates how the global critical minerals market is changing. Projects once considered too risky are now receiving direct government backing because access to strategic raw materials has become a matter of national security. Tungsten is evolving from a niche industrial metal into a strategic resource, meaning companies capable of supplying markets outside China are likely to enjoy stronger government support and higher investor valuations.
Aleksei Andrievskii | Advisory Board Member, Bendura Bank AG | Liechtenstein