US Government Shows Interest in Financing Cornish Mine Project
The company behind a major initiative to resurrect a historic Cornish tin mine has disclosed that it could potentially secure financing support from the United States government. Cornish Metals, which listed on the AIM market in December, announced on Thursday that it had received a non-binding letter of interest from the Export-Import Bank of the United States (EXIM), the country's official export credit agency.
Reviving a Historic Mining Operation
Cornish Metals is focused on reopening South Crofty, a tin and copper mine located near the village of Pool in Cornwall. This mine has a rich history, having operated for more than four centuries before its closure in 1998 due to insufficient investment and declining metal prices. The company acquired the mine in 2016 and expressed optimism last year that commercial extraction could commence by mid-2028, marking a significant revival of the UK's mining heritage.
Details of the Potential Financing Deal
It is understood that the letter of interest outlines EXIM's capacity to consider up to US$225 million in financing for the project. Additionally, South Crofty may qualify for special consideration under the agency's China and Transformational Exports Program, as noted by Cornish Metals. This potential financing support is directly linked to South Crofty providing a responsible supply of tin concentrate to the United States, aimed at building more resilient and secure supply chains for critical minerals.
Strategic Importance and Business Momentum
Don Turvey, chief executive of Cornish Metals, commented on the development, stating: "This Letter of Interest from EXIM is a testament to the quality and strategic importance of South Crofty and its potential to become the first new tin producer in the western world." He added that this indicative support highlights the acceleration of discussions with potential project financing sources as the company moves towards a final investment decision.
Turvey further emphasised: "Against a backdrop of strong tin prices supported by attractive market dynamics and the substantial progress being made on site, we are encouraged by the momentum building across the business as we work towards bringing South Crofty back into production." It is important to note, however, that the letter of interest does not constitute a formal financing commitment, as clarified by industry sources.
Recent Progress and UK Government Backing
In December, Cornish Metals reported that significant progress was being made at South Crofty, with the project expected to generate yearly earnings of approximately £70 million once fully operational. This revival effort has also garnered support from the UK government, with Chancellor Rachel Reeves committing to invest £29 million in the scheme in 2025, underscoring its national economic importance.
The potential US involvement adds an international dimension to this ambitious project, which aims to leverage both domestic and foreign investment to restore a key piece of Cornwall's industrial legacy and contribute to global supply chain resilience.
