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UK National Wealth Fund to invest £71m to restart Hemerdon tungsten mine
The package includes a £36m share purchase for a 7.4% stake and a £25m loan, and it targets 350 direct jobs while giving the government an option to buy up to half of future output.
OilPrice reports the UK National Wealth Fund will invest £71m in Tungsten West to help reopen the Hemerdon tungsten mine in Devon.
The funding is structured as a £36m share purchase that will deliver the government a 7.4% stake in Tungsten West and a seat on the board, plus a £25m loan facility.
The project is expected to support the South West England economy through 350 direct jobs, and it also gives the government an option to buy up to half of the mine’s future tungsten output.
Tungsten West acquired the Hemerdon site, previously run as Drakelands Mine, after it closed in October 2018 when Wolf Minerals went into liquidation; the company later redesigned the processing layout and secured new environmental permits, OilPrice adds.