UK National Wealth Fund Invests £71m in Tungsten West to Reopen Devon Mine

August 26, 2026 at 09:00 PM2 min

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The UK government’s National Wealth Fund is set to invest £71 million in Tungsten West to help reopen the Hemerdon tungsten mine in Devon. The package includes a £36 million share purchase giving the government a 7.4% stake and a board seat, plus a £25 million loan facility. The project is expected to create 350 direct jobs and gives the government an option to buy up to half of the mine’s future tungsten output.

Key Facts

The National Wealth Fund will invest £71 million in Tungsten West, comprising a £36 million share purchase and a £25 million loan facility.
The government will hold a 7.4% stake in Tungsten West and gain a seat on the company’s board of directors.
The Hemerdon mine in Devon is expected to create 350 direct jobs and support the local economy in South West England.
The government will have an option to buy up to half of the mine’s future tungsten output.
Mining operations at Hemerdon are scheduled to restart in the third quarter, with the government’s shares listed on the stock market on 27 August.

Investment Structure

The National Wealth Fund’s £71 million package includes a £36 million share purchase and a £25 million loan facility. The share purchase gives the government a 7.4% stake in Tungsten West and a seat on the board of directors. The government will also gain an option to buy up to half of the mine’s future tungsten output. Chancellor John Healey said the investment will supply vital minerals to British defence, energy and aerospace businesses.

Mine Restart and Jobs

The Hemerdon mine, previously known as Drakelands Mine, closed in October 2018 after operator Wolf Minerals went into liquidation. Tungsten West acquired the site in 2019 and redesigned the processing layout and secured new environmental permits. The new capital will fund rebuilding and upgrading processing equipment, day-to-day project costs, and labour needed to reach full metal production. Mining operations are set to restart in the third quarter, and the government’s shares will be formally listed on the stock market on 27 August. The project is expected to create 350 direct jobs in South West England.

National Wealth Fund Strategy

The investment marks the latest use of the National Wealth Fund to advance the government’s agenda in defence and energy. During Rachel Reeves’ tenure as Chancellor, the policy bank revealed a £599 million financing package for Rolls-Royce Small Modular Reactors. The capital injection is designed to de-risk the project for private lenders and crowd in additional investment from the City and international markets. Around a thousand jobs are expected to be created at Rolls-Royce SMR, which is co-owned by the FTSE 100 giant and Czech power company CEZ.