More than £70m of public money will be invested into a mining company to help restart production, the Chancellor has said.

The Hemerdon tungsten and tin mine in Devon will receive up to £71m from the National Wealth Fund to resume operations at the mine near Plymouth.

Chancellor John Healey said it meant Britain could tap into one of the world’s largest deposit of the mineral which is used in steel, electronics and aerospace industries. The government said it would ringfence 50% of the production for use in Britain.

The financing consists of a £36m equity investment alongside up to £35m of lending to help Tungsten West restart production.

The National Wealth Fund said the funding supported its continued growth and renewal of mining in south-west England, building on its most recent investment in Cornish Metals to help it reopen South Crofty tin mine in January 2025.

Healey said: “We are living in a more dangerous world, which is why backing British industry is more important than ever before. That is what this deal does.”

National Wealth Fund chief executive Oliver Holbourn said Hemerdon had the “largest deposits of tungsten in the world right on our doorstep”.

He said the increasing demand for tungsten was being driven by its use in defence, aerospace, next generation energy and electronics.

Chief executive of Tungsten West Jeff Court said the mine was a “world class, low cost and long life tungsten and tin resource”.

Court said: “It is extremely important to us that we prioritise UK requirements for this critical metal to support domestic demand.

“Hemerdon will be a long-term creator of economic benefits for the South West, including the generation of a significant number of direct and indirect jobs.”

He said the government support was ensuring critical minerals produced at the mine would underpin the UK’s national interests for the “long term”.

The company said the existing infrastructure and previously-operating mine resulted in competitive costs and a shorter route to production.

It said the target was to “ramp up to full scale production” in 2027.

The government’s business secretary Jonathan Reynolds said the investment was a “major vote of confidence” in its critical minerals sector and a step forward in the Prime Minister’s plans to “reindustrialise Britain”, while supporting skilled jobs across Devon.

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