Britain is to invest up to \u00a371 million in reopening a tungsten mine in Devon, in a move ministers say will strengthen the country\u2019s defence, energy and aerospace industries and reduce reliance on China for a strategically important mineral.<\/p>\n
The Hemerdon tungsten and tin mine on the outskirts of Plymouth will receive backing from the National Wealth Fund, giving the Government a 7% stake in the project for \u00a336 million and a further \u00a335 million towards restarting production.<\/p>\n
Ministers will also have the right to ringfence half of the mine\u2019s output for British use, potentially securing a domestic supply of a metal considered critical to advanced manufacturing and defence.<\/p>\n
John Healey<\/a>, Chancellor of the Exchequer, said: \u201cWe are living in a more dangerous world, which is why backing British industry is more important than ever before.<\/p>\n \u201cThat is what this deal does.<\/p>\n \u201cWe are tapping into one of the largest deposits of tungsten in the world, right here in the UK.<\/p>\n \u201cThis investment will supply vital minerals to British defence, energy and aerospace businesses \u2013 and keep good, well-paid jobs in the UK.<\/p>\n \u201c(This is) all part of this Government\u2019s commitment to drive growth in every postcode, back British business<\/a> and keep our country safe.\u201d<\/p>\n Tungsten is prized for its exceptional hardness and resistance to heat, making it important across machinery, electronics, aerospace and defence manufacturing.<\/p>\n The investment<\/a> comes as Western governments seek to secure supplies of critical minerals amid growing tensions with China. Beijing dominates global tungsten production and introduced export restrictions in 2025, contributing to a sharp increase in prices during the continuing trade<\/a> confrontation with the US.<\/p>\n For Britain, reopening Hemerdon offers a rare opportunity to bring a strategic mineral supply chain back onshore.<\/p>\n But the project also illustrates the difficulties involved in rebuilding domestic mining capacity. The mine ceased production in 2018 after its previous owner entered administration<\/a>, while Tungsten West warned in 2023 that it was approaching insolvency.<\/p>\n The company subsequently sought government assistance after recording losses of more than \u00a310.3 million to March 2024.<\/p>\n The National Wealth Fund said the investment would support around 350 jobs, while the South West contains some of Britain\u2019s richest deposits of critical minerals, including lithium and tin.<\/p>\n Business Secretary Jonathan Reynolds described the deal as a \u201cvote of confidence\u201d in Britain\u2019s critical minerals industry.<\/p>\n Jeff Court, chief executive of Tungsten West, said: \u201cWe are incredibly pleased to welcome the UK Government\u2019s National Wealth Fund as a long-term equity partner in the development of the Hemerdon mine.<\/p>\n \u201cHemerdon is a world class, low cost and long-life tungsten and tin resource in the UK.<\/p>\n \u201cIt 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<\/a>.<\/p>\n \u201cHemerdon 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.<\/p>\n \u201cThrough the support of the UK Government, we are ensuring that critical minerals produced at Hemerdon will underpin the UK\u2019s national interests for the long term.\u201d<\/p>\n The Government\u2019s investment represents a broader shift in economic<\/a> policy: critical minerals are increasingly being treated not simply as commodities, but as strategic assets.<\/p>\n With China controlling much of the global supply and geopolitical tensions disrupting established trade<\/a> routes, the ability to extract and process key materials domestically is becoming an increasingly important component of national security.<\/p>\n