Aim-listed Tungsten West remains on track to start Phase 1 fines gravity processing during the third quarter at the Hemerdon tungsten and tin mine, in the UK.
Site-wide works are accelerating towards full commissioning of the plant by the first quarter of 2027.
Most recently Tungsten West appointed the remaining major subcontractors on site, and started preparatory earthworks for the mineral processing facility and mine waste facility, as well as recruited COO Ron Day and other key senior leadership roles.
CEO Jeff Court says the company is rapidly working to bring Hemerdon back into production to address the ever-increasing supply gap for strategic tungsten concentrate.
“The project’s advancement is going well across all fronts, with first phase production targeted in the third quarter. Looking further ahead, the company is in a strong position to commission the new-build crushing, screening and ore sorting facilities in the first quarter of 2027,” he confirms.
Court further explains the company has made positive progress with its debt funding package of $85-million, which is well advanced in final due diligence stages.
Additionally, the completion of the mining equipment finance package, valued at £22.3-million, with McHale Komatsu – the Komatsu equipment supplier in the UK – is another important milestone reached by Tungsten West in recent weeks.
Notably, Tungston West will pay Hargreaves Services £3-million in April and £7-million in May as per terms of an agreement reached between the companies to terminate Hargreaves’ mining service contract. After the April payment, Hargreaves will release security held over the Hemerdon mineral lease but Tungsten West remains in discussions with the company over future opportunities.
MARKET VIEW
Commenting on market conditions, Court says tungsten and tin prices have remained extremely buoyant, further increasing the positive scope of the project’s economics.
While the Hemerdon feasibility study was based on market pricing of $400/t for tungsten and $32 500/t for tin, the prevailing market prices as of March 31 were $2 999/t for tungsten and more than $46 000/t for tin.
Owing to the continuation of extremely positive market conditions, the company’s focus remains on the swift restart of production at Hemerdon.
Source: www.miningweekly.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein