Tungsten West Signed 8-Year Supply Deal Worth £1.4B
Mining operators should track how government-backed mineral supply contracts impact long-term pricing and export capacity.
Updated on Oct. 4, 2026 in Oil and Gas
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Tungsten West has entered into an eight-year supply agreement with Elmet Technologies to provide 1,000 tonnes of tungsten annually. This deal, valued at over £1.4 billion, is tied to a £71 million investment from the UK government to bolster critical mineral supply chains.
Why it matters
The agreement strengthens international cooperation on critical minerals while securing a domestic supply option for the UK defense industry. By backing the Hemerdon mine, the state is prioritizing sovereign control over raw materials essential for advanced manufacturing and defense.
The eight-year contract covers 1,000 tonnes of tungsten annually, with a further 500 tonnes reserved for UK industrial use. The UK government maintains an option to purchase 50% of the Hemerdon mine's annual output.
The players
Tungsten West
A mining company focused on tungsten extraction at the Hemerdon mine in the UK.
Elmet Technologies
A US-based manufacturer specializing in high-performance tungsten and molybdenum products.
National Wealth Fund
A UK government investment vehicle providing capital for strategic domestic industrial infrastructure.
The details
Tungsten West will leverage the Hemerdon mine site near Plympton to extract and process the ore for international export. The agreement serves as a supply mechanism for US-based Elmet Technologies, while the UK government secured its 50% production option as a condition of its funding. This structure integrates private extraction with public sector strategic security requirements.
Timeline
The eight-year supply agreement commenced in October 2026.
Market Landscape
This deal follows the objectives set out in the UK government's Critical Minerals Strategy to secure essential resources. It marks a significant shift toward state-backed investment in domestic mining to counter supply chain vulnerabilities.
Operators in manufacturing or defense should monitor how state-directed mineral off-take agreements affect the availability of raw materials for private buyers. Increased public investment in mining may change supply availability and pricing models for localized industrial sectors.
The takeaway
This deal signals a growing trend of governments using sovereign funds to lock in supply of strategic minerals via direct production options. Businesses should audit their own supply chains for dependency on similar high-demand materials to anticipate potential state-prioritized allocation shifts.
Further reading
For broader trends in resource extraction, see our latest coverage on Oil and Gas.
Source note: This article includes information reported by Plymouth Herald.
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