Government commits £71m to Hemerdon tungsten and tin mine near Plymouth

Homeland September 7, 2026

The National Wealth Fund has committed up to £71 million to Tungsten West to restart the Hemerdon tungsten and tin mine near Plymouth. The investment includes equity and debt financing to support the return to full-scale production targeted for Q1 2027, with the UK Government securing procurement rights over half the mine’s output.

The National Wealth Fund is providing £36 million in equity investment and up to £35 million in debt financing to Tungsten West to bring the Hemerdon mine back into operation. The site, located on the outskirts of Plymouth, is expected to create around 350 direct jobs once fully operational and return to full-scale production in the first quarter of 2027.

The funding package includes an exclusive negotiation period that gives the UK Government the right to procure up to 50% of the mine’s tungsten production. This arrangement underpins the government’s stated objective to reduce reliance on imported critical minerals and strengthen domestic supply chain resilience across defence, aerospace, electronics and energy sectors.

Strategic Importance and Capacity

Hemerdon holds one of the largest known tungsten resources globally and is regarded as a nationally significant asset. The mine benefits from existing infrastructure and a history of previous operation, positioning it to return to production within a shorter timeframe than typical new mining projects and on a competitive basis.

Tungsten demand is rising across defence applications, aerospace manufacturing, electronics and next-generation energy industries. The project is expected to contribute to a regional cluster of mining and processing businesses in the South West and generate long-term economic benefits for Plymouth, Devon and the wider region.

Government Backing

Chancellor of the Exchequer Rt Hon John Healey MP 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.”

Secretary of State for Business, Innovation, Science and Trade Rt Hon Jonathan Reynolds MP added: “The National Wealth Fund’s investment is a major vote of confidence in our critical minerals sector and another step forward in the Prime Minister’s plan to reindustrialise Britain, which will support skilled jobs across Devon and unlock a new supply chain to power UK industry. This is our Critical Minerals Strategy in action: doubling down on projects like Tungsten West’s which will boost our economic resilience, strengthen supply chains and drive good growth in the South West and across the UK.”

Luke Pollard MP, Member of Parliament for Plymouth Sutton and Devonport, said: “When we’re improving the readiness and resilience of our national security, critical minerals like tungsten are at the heart of that effort. I’m proud that the Labour government is backing British and has secured 50% of the output from the mine. This is fantastic news for jobs in Plymouth and is a huge boost for our national security.”

For the UK Defence Supply Chain

This investment signals sustained government commitment to domesticating critical minerals supply for defence and allied industrial sectors. Tungsten West’s restart will create procurement pipelines for mining and primary processing contractors, specialist equipment suppliers for mineral extraction and beneficiation, and onshore refining and value-added manufacturing specialisms. Suppliers seeking to support this scale of infrastructure project will need to evidence operational experience in hard-rock mining, compliance with UK environmental and safety standards, and supply chain security accreditation aligned to defence procurement frameworks. The project exemplifies the government’s wider Critical Minerals Strategy, which frames sovereign tungsten capability as a lever for supply chain resilience, sovereign industrial capacity, and reduced dependency on hostile or unstable external sources.