The Hemerdon mine, located near Plymouth, is scheduled to reopen before the end of the year, eight years after its previous closure. This revival comes after a £71 million financial injection from the government's National Wealth Fund.
The funding package includes a £36 million investment for a 7% stake in the mine's owner, Tungsten West, and a £35 million loan. This move is intended to support Britain's rearmament efforts amidst a more volatile global security landscape, characterized by ongoing conflicts in Ukraine and the Middle East.
Tungsten, a dense metal crucial for producing ammunition, missiles, and armor-piercing shells, is vital for defense manufacturing. The Hemerdon mine possesses some of the world's largest known reserves of this resource.
"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," stated Chancellor John Healey. The mine's reopening is expected to decrease the United Kingdom's dependence on China, which currently accounts for approximately 80% of global tungsten production.
Originally discovered in 1867, the Hemerdon mine played a role in metal production during both World Wars before closing in 1944. It was briefly reopened in 2015 but ceased operations again in 2018 due to financial difficulties.