Tungsten West is looking to revive production at the Hemerdon mine near Plympton
The vast open pit tungsten and tin mine at Hemerdon, Plymouth
A company looking to revive a mine in Devon that holds a rare critical metal says it could start production within 12 months if it secures the necessary funding. Tungsten West – the owner and operator of the Hemerdon tungsten and tin mine near Plymouth – said on Monday (February 2) it had reached “term sheet stage” with a number of potential lenders, while multiple letters of intent were also “being progressed”.
The statement comes just months after Tungsten West warned over its finances. In September, the London-listed company told investors that if it did not secure ‘major’ funding it would be unable to pay its debts.
According to Tungsten West, 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 US government.
Hemerdon mine is located seven miles north-east of Plymouth, near the village of Plympton, and is one of the largest tungsten resources in the world. Tungsten West acquired the site through a receivership process in 2019 following the collapse of previous operator Wolf Minerals.
Tungsten West claims the mine could produce 20 per cent of the global supply of primary tungsten outside of China once operational.
Jeff Court, chief executive of Tungsten West, said that since releasing a feasibility study last year tungsten prices had increased more than 200 per cent, while tin prices had risen over 70 per cent.
“The project’s economics have vastly improved, underlining the importance of advancing the project rapidly,” he said on Monday.
“To this end, in addition to the well-advanced project financing, we have accelerated project re-commissioning work, including ordering long-lead items and engaging key project resources for the refurbishment works. This work programme will have the company producing tungsten concentrate within 12 months of funding.”
Alongside the project’s financing, Tungsten West said it was “continuing momentum” on the work needed for recommissioning the site.
According to the company, it has progressed orders for equipment and engineering work, and has begun on-boarding “key” resources in preparation for starting project operations.
The company will update the market on developments before the end of the first quarter of this year, it added.