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Tungsten West signs $1.8B offtake deal for Hemerdon mine
The eight-year agreement covers 1,000 tonnes per annum of WO3 and is intended to channel Hemerdon output into US and UK tungsten processing supply chains.
Tungsten West, the owner and operator of the Hemerdon tungsten and tin mine in Devon, UK, announced a binding eight-year supply and offtake agreement with Elmet Technologies, a member of The Elmet Group. The offtake is for 1,000 tonnes per annum of contained WO3 from Hemerdon, valued at over £1.4 billion (about $1.8 billion) based on prevailing market commodity prices and foreign exchange rates.
According to the company, the deal creates a long-term route for Hemerdon tungsten into US and UK processing and manufacturing supply chains, aligning with the UK government’s strategic interest in the site. This comes after the National Wealth Fund invested up to £71 million in Tungsten West, and the UK government has been given exclusive negotiation rights to procure up to 50% of Hemerdon’s annual tungsten production.
The agreement also reflects Hemerdon’s historical role, with Tungsten West noting the mine supplied crucial tungsten for military and defense efforts during both World War I and World War II, and that mining continued intermittently until shutting down in 1944.
UK Minister for Reindustrialisation Blair McDougall said the announcement builds on partnership with the United States in mining and processing to support defense and clean energy needs, while Tungsten West CEO Jeffery Court described the agreement as a major step toward making Hemerdon a strategically important tungsten source for the Western world. The company added that under Chilean law, if the offer is rejected, the parties must still complete a mandatory five-day government mediation process.