A century-old tungsten mine in Devon is set to restart production after receiving £71m in taxpayer funding.
In the latest effort to boost Britain's rearmament , the Government's National Wealth Fund (NWF) has invested in Tungsten West, the owner of Hemerdon mine near Plymouth.
The cash will be used to reopen Hemerdon for the first time in eight years, with the mine boasting some of the largest tungsten reserves in the world.
As part of the deal, the NWF will take a 7pc stake in Tungsten West for £36m before lending the business £35m.
It reflects a drive to make the UK more self-sufficient in critical minerals , particularly metals vital to defence.
Recent conflicts in Ukraine and the Middle East have sent demand for tungsten surging, which is one of the most dense and heavy metals.
It is used in everything from hypersonic missile nose cones to armour-piercing bullets, bunker-busting bombs and "airburst" counter-drone shells.
John Healey, the new Chancellor, 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."
The Hemerdon mine was first discovered in 1867 and mined during both world wars before closing in 1944.
It was briefly reopened between 2015 and 2018 before shutting again because of a lack of funds.
'Increasing global demand'
Tungsten West, which is listed on London's alternative investment market, was founded in 2019 with the aim of reopening the mine, which contains the fourth-largest tungsten reserves in the world.
Oliver Holbourn, the chief of the NWF, said: "There is strong and increasing global demand for tungsten, supported by its strategic applications in defence, next generation energy and aerospace.
"In Hemerdon, the UK has one of the largest deposits of tungsten in the world right on our doorstep."
Tungsten West is set to start mining tin and tungsten at the Hemerdon mine by the end of this year before returning to full production in early 2027.
China produces roughly 80pc of the world's tungsten supplies. However, prices of the critical metal have surged in the past year as a result of export restrictions imposed by Beijing.
Britain imports the entirety of its tungsten supplies from countries including France, Germany and China.
However, at full production the Hemerdon mine is expected to produce 3,300 tonnes of tungsten concentrate a year – equivalent to 20pc of world supplies outside China.
Jeff Court, Tungsten West's chief executive, said: "Hemerdon is a world-class, low-cost and long-life tungsten and tin resource in the UK.
"It 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."
