UK Government Secures Stake in Devon Tungsten Mine for £71m

This funding package, comprising a £36 million equity purchase and a £25 million loan facility, positions the state as a direct partner in the Plympton-based mining firm. Beyond securing a seat on the board, the government aims to shore up supply chains for the British defence, energy, and aerospace sectors. Chancellor John Healey emphasized that the investment serves to retain high-skilled employment in the region while insulating critical industries from global supply volatility.

The Hemerdon site, formerly known as Drakelands Mine, stalled in 2018 following the liquidation of its previous operator, Wolf Minerals. Since acquiring the asset in 2019, Tungsten West has overhauled its processing infrastructure and navigated the regulatory hurdles required for new environmental permits. The fresh capital will facilitate the final upgrades to site equipment, covering the operational costs necessary to reach full production capacity by the third quarter.

This move aligns with the broader strategy of the National Wealth Fund, which recently backed a £599 million financing package for Rolls-Royce Small Modular Reactors. By providing taxpayer-backed capital, the government intends to de-risk industrial projects, effectively incentivizing private lenders to commit additional resources. For Devon, the restart of the mine promises to generate 350 direct jobs, reviving a local industrial hub that has remained dormant for years.