The National Wealth Fund has today announced a £28.6m direct equity investment into Cornish Metals Inc, to help finance the re-opening of Cornwall’s South Crofty tin mine, creating more than 300 direct local jobs.
The NWF’s commitment is designed to mobilise private capital into the project. Its investment is part of a £56m funding round to further de-risk the South Crofty tin mine by commencing early project works, placing orders on long-lead items and completing key work programmes including the shaft refurbishment and mine dewatering. South Crofty is a fully permitted underground tin mine with more than 400 years of recorded production prior to its closure in 1998, and hosts one of the highest grade tin resources in the world.
The financing supports the continued growth and sustainability of Cornwall’s mining sector, building on the NWF’s investment into nearby Cornish Lithium in August 2023, with both lithium and tin considered by the UK government as critical minerals and essential for the net zero transition. Solar panels, wind turbines, electric vehicles (EVs), semiconductors and energy storage all require a supply of tin, with demand for these components set to outstrip supply in the coming years, driven in part by increased use across the renewables sector.
permitted underground tin mine with more than 400 years of recorded production before its closure in 1998. Image/Cornish Metals Inc
Aligning with its objective to drive growth, the NWF’s investment also supports the local enterprise plan to leverage access to critical minerals as a priority. By creating a critical minerals cluster in Cornwall, there will be an increase in skilled, year-round job opportunities in what is one of the more-deprived areas of the UK.
Chancellor of the Exchequer Rachel Reeves said: “Growth is this Government’s number one mission, and we’re going further and faster to kick start our economy so that we can put more money in people’s pockets.
“This is just the kind of investment that will help us do that, not only supporting the growth of the Cornish mining sector but creating high-quality jobs and opportunity for the region and beyond”.
John Flint, CEO, National Wealth Fund, said: “Critical minerals are not only an important driver of the UK’s transition to net zero, but also of the UK’s growth mission, providing opportunities to anchor important supply chains in the UK.
“This is our second investment in critical minerals in Cornwall, and shows how we can mobilise private investment into local economies, creating skilled and long-term employment.”
Don Turvey, CEO of Cornish Metals, commented: “We are very pleased to have NWF become a major shareholder in Cornish Metals and to lead this fundraise alongside Vision Blue, demonstrating support for the Company and our plans to bring tin mining back to Cornwall.
“The Cornish Metals team has achieved many important milestones over the last couple of years as we continue to advance South Crofty towards a restart of production. This financing will enable the Company to maintain this strong momentum and further unlock the project’s potential by delivering crucial milestones expected in the coming year, including the completion of mine dewatering and shaft refurbishment, the start of early project works and placing orders of long lead items, and concluding the project finance process.”
The investment is subject to the requisite shareholder approvals in March 2025.
