DEVON: Tungsten West plc (LON:TUN), a mining company focused on reviving the Hemerdon tungsten and tin mine in Devon, has finalized its development and economic plan to restart operations. The company announced the plan ahead of a full feasibility study, which is being prepared by AMC Consultants with support from industry experts.
Key Project Highlights
- Global Significance: Hemerdon is a fully permitted, shovel-ready tungsten resource that could quickly become a major non-Chinese supplier of the critical mineral.
- Production Timeline: Operations are expected to begin within 12 months of securing funding, with full-scale production anticipated by late 2026.
- Market Impact: The mine could supply 20% of global tungsten production outside China, addressing supply chain vulnerabilities.
- Strong Economics: The project boasts an internal rate of return (IRR) of 29.3% and a net present value (NPV) of $190 million at a 7.5% discount rate.
- Financing Needed: The company seeks $93 million to restart operations and is in talks with government agencies and mining funders, aiming to secure funding by year-end 2025.
Supply Chain and Strategic Importance
Tungsten is a critical metal used in defense, automotive, and energy sectors. With China restricting exports, global prices have surged past $400 per metric tonne unit (mtu). Hemerdon’s revival could help reduce Western reliance on Chinese supply.
Operational Upgrades and Environmental Measures
The plan includes:
- A new crushing and ore-sorting system to improve efficiency.
- Noise mitigation measures to address community concerns.
- Phased commissioning to minimize startup risks.
- Approval from the UK Environment Agency to trial-process 2,500 tonnes of existing tailings.
The mine has an initial 11-year operational life, with potential extensions to over 40 years through the “Hemerdon Futures” expansion. Annual production is projected at 332,000 mtu of tungsten trioxide (WO₃) and 462 tonnes of tin.
Jeff Court, CEO of Tungsten West, said: “Hemerdon will strengthen the West’s tungsten supply chain. We’re engaging with funders and stakeholders to bring this strategic asset back online.”