Tungsten West is preparing to initiate the phased production ramp-up at its Hemerdon tungsten and tin mine in Devon, with commissioning of the fines gravity circuit and downstream processing facilities scheduled for Q3 2026, followed by the coarse gravity circuit in Q4 2026. The full project commissioning is anticipated in Q1 2027, with the company targeting a capacity of 500 tonnes per hour (tph) throughout 2027 and a workforce of 350 by early 2027. The project is projected to be completed within budget, and over 100 employees have already been recruited.
The company has secured a binding $25 million bridging loan from a substantial shareholder and is in the final stages of due diligence for a larger debt package of up to $85 million. An additional $22.3 million funding package for mining equipment has been secured from McHale Komatsu. This financial backing supports the various stages of the restart, including the refurbishment of the fines gravity circuit and the utilization of mobile crushing and washing solutions. The initial operation of the fines gravity circuit will be at 100 tph, with a full installed capacity of 200 tph.
Tungsten West has entered into agreements with Duo Operations for mobile crushing and washing services and with Duo Group for the engineering, procurement, and construction of the new crushing, screening, and ore sorter facility. Additionally, Gekko Systems Pty will supply an in-line pressure jigs system. The company has also made progress in settling past agreements, including paying the remaining $3 million to Hargreaves Services for the mine acquisition and agreeing to a $7 million compensation fee by May 15, 2027, for terminating a mining services agreement.
Market conditions are favorable, with tungsten concentrate prices consistently above $3,000 per tonne unit in the European market. As of March 31, tungsten prices were approximately $2,995 per tonne unit, significantly higher than the $400 per tonne unit used in the definitive feasibility study. Tin prices have also risen to over $46,000 per tonne, compared to the $32,500 per tonne in the feasibility study. CEO Jeff Court highlighted the buoyant market conditions and the company's commitment to address the increasing supply gap for strategic tungsten concentrate.
