Britain commits up to 71 million pounds to the Hemerdon tungsten mine
Hemerdon's restart receives public funding as Brazil's only operating rare-earth mine changes hands for 2.8 billion dollars, while falling ore grades constrain copper output at Escondida.
Economics & Markets··Evening
A public fund backs Hemerdon's restart
The UK's National Wealth Fund is providing Tungsten West with 36 million pounds of equity and up to 35 million pounds of lending to restart the Hemerdon tungsten and tin mine in Devon. The agreement gives the government an exclusive negotiation period for the right to buy up to 50 per cent of annual tungsten output. The company aims to reach full-scale production in the first quarter of 2027, with about 350 direct jobs expected at capacity. Tungsten is used in defence, aerospace and next-generation energy, and the investment is presented as part of Britain's critical-minerals strategy.[1]
Pela Ema output is tied to a 15-year offtake agreement
Nasdaq-listed USA Rare Earth has agreed to buy Serra Verde Group, operator of the Pela Ema mine in Brazil's Goiás state, for about 2.8 billion dollars. The financing package totals 1.55 billion dollars, after the US Department of War increased its backing by 250 million dollars. A 15-year offtake agreement commits all first-phase magnetic rare-earth output to a special-purpose vehicle capitalised by US government entities and private investors. Pela Ema produces neodymium, praseodymium, dysprosium and terbium, which are used in electric-vehicle motors and wind turbines. A special shareholder meeting is scheduled for 28 August.[2]
Escondida moves nearly twice as much rock for the same copper
Escondida, the world's largest copper mine, projects its 2027 output falling by 300,000 tonnes to 1.1 million tonnes as ore grades decline. Chile's weighted average grade dropped from 1.13 per cent in 2002 to 0.62 per cent in 2024, requiring nearly twice as much rock to be moved for the same amount of refined copper. National production is expected to fall 2.6 per cent this year to 5.27 million tonnes. Escondida plans to invest up to 5.9 billion dollars in a new concentrator, while much of Chile's mining pipeline of 104.55 billion dollars through 2034 offsets decline rather than adding supply.[3]
