Tungsten West Advances Funding for Major Plymouth Mine Revival
The company behind Plymouth's significant tungsten and tin mine has issued a promising statement regarding the project's revival. Tungsten West, the owner and operator of the Hemerdon mine near Plympton, Devon, has announced it is progressing towards securing the necessary funding to restart production. According to the company, if financing is secured, operations could commence within just 12 months, marking a crucial step forward for this critical resource site.
Financial Progress and Market Context
In a statement released on Monday, February 2, Tungsten West revealed it has reached the "term sheet stage" with several potential lenders. Additionally, multiple letters of intent are actively being advanced. This development follows a period of financial uncertainty; in September, the London-listed company warned investors that without "major" funding, it would struggle to meet its debt obligations. The current progress represents a significant turnaround, with the company now expressing confidence in its financial trajectory.
The potential agreements are in addition to a previously announced expression of interest from the Export-Import Bank of the United States (EXIM), the official export credit agency of the U.S. government. This international interest underscores the strategic importance of the Hemerdon mine, which is located seven miles north-east of Plymouth and is recognised as one of the largest tungsten resources globally.
Strategic Importance and Economic Viability
Jeff Court, Chief Executive of Tungsten West, highlighted the improved economics of the project, driven by substantial increases in metal prices. Since the release of a feasibility study last year, tungsten prices have surged by more than 200 per cent, while tin prices have risen over 70 per cent. "The project's economics have vastly improved, underlining the importance of advancing the project rapidly," Mr. Court stated. He emphasised that the mine could eventually produce 20 per cent of the global supply of primary tungsten outside of China, positioning it as a key player in the critical metals market.
Operational Preparations and Timeline
Alongside the financing efforts, Tungsten West is accelerating its operational preparations to ensure a swift restart. The company has:
- Ordered long-lead items essential for the refurbishment works.
- Engaged key project resources to oversee the recommissioning process.
- Progressed orders for necessary equipment and engineering work.
- Begun on-boarding critical personnel in preparation for project operations.
"This work programme will have the company producing tungsten concentrate within 12 months of funding," Mr. Court confirmed. The company is maintaining momentum on site recommissioning and plans to provide a further update to the market before the end of the first quarter of this year.
Tungsten West acquired the Hemerdon site through a receivership process in 2019, following the collapse of the previous operator, Wolf Minerals. The revival of this mine not only holds economic promise for the local region but also contributes to the diversification of global tungsten supply chains, reducing reliance on dominant producers.
