The National Wealth Fund has announced a significant investment in a mine specialising in tungsten and tin in a bid to secure the UK government access to minerals critical to the energy transition as well as the arms industry.
NWF, a key UK public finance investor, has committed £71m to Tungsten West, a mining company focused on restarting the Hemerdon tungsten and tin mine near Plymouth. Outside China and Russia, Hemerdon marks one of the world’s largest tungsten resources.
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The deal includes a £36m equity investment alongside up to £35m of lending; it will fund the construction, commissioning and processing costs associated with restarting production. This will give the UK exclusive negotiation period for right to procure up to 50% of Hemerdon’s annual production
Tungsten carbide is used in metalworking tools to manufacture turbine components, and tungsten disulfide helps to enhance the light absorption and efficiency of photovoltaic cells. But the minerals also play a vital role in the defence and aerospace industry.
Tungsten West plc is currently owned by a combination of private equity firms, venture capital investors and other institutional investors, with Lansdowne Partners holding some 28% of all shares. Other major investors are Baker Steel Capital Managers and Drakewood Capital Management. UK LGPS fund West Yorkshire Pension Fund also holds a small stake in the firm.
