UK-based Tungsten West on Friday released a development and economic plan for the restart of the Hemerdon tungsten and tin mine, in Devon, which could deliver over 20% of global primary tungsten supply from outside China.

The Hemerdon project, which is fully permitted and construction ready, will produce about 332 000 metric tonne units (mtu) of tungsten trioxide and 462 t/y of tin in concentrate during its steady-state production phase.

The company said operations could start about 12 months from securing funding.

Tungsten West reported that it was in discussions with multiple parties and that it expected to complete its fundraising by the end of 2025. The estimated financing requirement for the project restart was $93-million, which benefited from about $300-million in historical investment.

At full production, the mine is projected to generate $456-million in life-of-mine post-tax cash flow, with a net present value of $190-million and an internal rate of return of 29.3%. The base case assumes a tungsten price of $400/mtu – the low end of current market levels.

“The publication of the plan serves as reflection of our strong intent and focus to restart mining operations and tungsten production at Hemerdon,” commented CEO Jeff Court.

“At full capacity, Hemerdon is expected to produce over 20% of the global non-China supply of tungsten and will significantly strengthen the developed world's supply chain for this critical metal.”

The mine plan comprises an initial 11-year mining period, followed by four years of stockpile reclaim and an additional 12 years of premium aggregate sales. Further mine life extensions are being considered under the “Hemerdon Futures” project, which could extend operations to over 40 years.

Court said the plan offered a “clear, staged and manageable” route to production.

“I look forward to the completion of the updated feasibility study, expected in the coming months, which will confirm the attractive economics and strong investment case for the project, bolstering our position in ongoing conversations with a range of funding partners,” he stated.

Tungsten West will invest in a new crushing, screening and ore sorting front-end, enhancements to processing modules, and refurbishment of the existing mineral processing facility. The project also includes comprehensive environmental noise mitigation measures.

The operation will have a processing capacity of 3.5-million tonnes a year of primary ore and is expected to sit within the lower quartile of global producers with an all-in sustaining cost of $144/mtu of tungsten.

China’s recent export restrictions on tungsten have driven prices above $400/mtu and exposed the vulnerability of Western supply chains, particularly for metals critical to sectors such as automotive, defence and energy.

“The export restrictions imposed by China further highlight the supply chain dependence of the Western world for critical dual-use metals, such as tungsten,” the company stated.

Tungsten West has also secured approval from the Environment Agency for limited trial running of components of the processing plant for the reprocessing of 2 500 t of existing on-site material.

In parallel with the restart funding, the company intends to issue a further tranche of convertible loan notes to support activities through to financial close. Hannam & Partners is acting as financial adviser and broker for the funding initiatives.