Key Highlights

  • Tungsten West Plc (LSE:TUN) restarted processing at the Hemerdon tungsten and tin mine in South Devon, with the first ore passing through the plant on 11 September 2026.
  • The National Wealth Fund has committed up to £71 million to fully restart Hemerdon, and the shares jumped around 16.6% to about 50p on the news.
  • The company is targeting steady-state production of 332,000 metric tonne units of tungsten trioxide a year by the end of the first quarter of 2027.
  • Once fully operational, Hemerdon could Supply around 20% of global primary tungsten supply outside China.
  • Tungsten prices remain far above the levels assumed in the mine's feasibility study, supporting strong potential cash flow.

Why Tungsten West Is in Focus Today

Tungsten West Plc (LSE:TUN) is one of the most closely followed critical minerals stories on the FTSE AIM All-Share as of 5 November 2026. The company is in the middle of ramping up the Hemerdon mine, one of the world's largest known tungsten deposits, after restarting processing in September. In October, the UK's National Wealth Fund committed up to £71 million to support a full restart, a major vote of confidence that sent the shares sharply higher.

With China controlling the large majority of global tungsten production and Western governments seeking secure supplies for defence and industrial uses, Hemerdon has taken on strategic significance. That backdrop, combined with soaring tungsten prices, has made LSE:TUN a heavily discussed stock on investor forums and Social Media as the market waits for evidence that the ramp-up is on track.

Hemerdon Back in Production

Hemerdon is a fully permitted, previously operated open-pit tungsten and tin mine near Plymouth. Its history stretches back more than a century, with production during both world wars. The most recent operator, Wolf Minerals, collapsed in 2018 amid operational and structural challenges. Tungsten West acquired the mine in December 2019 and has since redesigned and improved the processing plant and Mining approach.

On 11 September 2026, the first tungsten ore passed through the refurbished plant. Commissioning of the fines gravity circuit took place in the third quarter, with the coarse gravity circuit following in the fourth quarter, leading to full commissioning in the first quarter of 2027. Chief executive Jeffery Court, a mining executive with senior experience at major international groups, said the focus is now on safely ramping up and establishing Hemerdon as a reliable long-term supplier of tungsten concentrate to the UK and its partners.

National Wealth Fund Investment

The National Wealth Fund's commitment of up to £71 million is a cornerstone of the funding package. Part of the proceeds will repay a US$25 million bridging Loan arranged in May 2026 with an entity controlled by Gregory Coffey. The fund also receives a limited exclusive negotiation period to agree an offtake covering up to 50% of Hemerdon's tungsten production as set out in the 2025 feasibility study.

Tungsten West Plc (LSE:TUN) has also signed an eight-year offtake agreement with Elmet Technologies, a US tungsten products manufacturer, and is in discussions with a Downstream tungsten refiner. Earlier, the US Export-Import Bank issued a non-binding letter of interest for up to US$95 million. The company also completed a mining equipment finance package worth around £22.3 million and brought mining operations in-house after agreeing terms with its former contractor.

Tungsten Prices Transform the Economics

Tungsten is used in hard metals, cutting tools, defence applications, electronics and high-temperature alloys. Prices have surged in 2026 as supply tightened and Demand linked to defence and strategic applications increased. The Hemerdon feasibility study was based on much lower tungsten and tin prices than those prevailing in 2026, which means the mine's potential cash generation at current prices is significantly higher than originally modelled. Management has suggested that, at current prices, Hemerdon could generate substantial annual after-tax Cash Flow once in full production.

Building the Team

Tungsten West has recruited extensively to support the restart, including chief operating officer Ron Day and more than 120 new personnel. The first fleet of Komatsu earth-moving equipment arrived on site in mid-2026, with the major mining fleet commissioned from August.

Risks to Consider

Ramping up a mine is complex, and Hemerdon's history shows the risks involved. Delays in reaching steady-state throughput, lower recoveries or equipment issues could affect output and cash flow. Tungsten prices can be volatile, and a sharp fall would reduce margins. Final terms of funding and offtake agreements still need to be completed, and further dilution is possible if additional Capital is required.

What Investors Are Watching Next

The key catalysts for Tungsten West Plc (LSE:TUN) are monthly or quarterly production updates showing progress towards steady-state output of 332,000 metric tonne units a year by the end of the first quarter of 2027. Investors will watch for commissioning of the coarse gravity circuit, concentrate grades and recoveries, and the first significant sales revenue.

The market will also look for completion of the National Wealth Fund investment, finalisation of an offtake agreement with the fund, progress on talks with a downstream refiner and any further government or export Credit support. If the ramp-up stays on schedule, LSE:TUN could become a cornerstone of Western tungsten supply and one of the most important critical minerals producers on the FTSE AIM All-Share.