Britain’s Tungsten Gamble: A Faustian Bargain in the Name of Industry

The £71 million investment in the Hemerdon tungsten and tin mine in Devon is being hailed as a vital shot in the arm for British industry. However, this simplistic view overlooks more complex issues surrounding government backing, private enterprise, and national security.

At its heart lies a crucial question: what exactly does this investment mean for Britain’s future? The money will supposedly bolster our defence and nuclear industries – sectors increasingly reliant on rare earth minerals like tungsten. But is this investment merely a way of backing British industry at all costs, rather than investing in genuinely sustainable solutions?

The Hemerdon mine has a checkered past, having been shut down in 2018 due to its previous owner’s administration. It was only kept afloat by government intervention, and the new investment will support about 350 jobs. This raises questions about long-term viability and whether these projects are merely band-aid solutions for struggling industries.

Tungsten is an essential mineral, but one that’s in high global demand – primarily from China. With prices rising since 2025 following export restrictions, it’s little wonder Britain wants to tap into its own reserves. However, this highlights our reliance on foreign imports and raises questions about whether we should be investing more in domestic mining and processing infrastructure.

The government justifies the investment as necessary for national security and job creation, but it also represents a savvy business move – allowing the state to pick up a 7% stake in the mine for £36 million. This raises questions about the role of the private sector in British industry and whether government backing is simply a euphemism for state-led industrial policy.

The south west of England is home to significant minerals deposits, including lithium and tin. However, this investment also speaks to Britain’s growing reliance on rare earth minerals to fuel its industries. As we transition towards a low-carbon future, will our mining practices keep pace? Or are we simply trading one set of environmental concerns for another?

The economic viability of this investment is not the only concern – its social and environmental implications must also be considered. Will this mine become a long-term creator of economic benefits for the South West, as Chief Executive Jeff Court claims? Or will it merely be a short-term fix that leaves us with more problems down the line?

Britain’s tungsten gamble is just the latest chapter in our ongoing saga of government backing and private enterprise. Whether or not this investment pays off remains to be seen – but what’s clear is that it’s a Faustian bargain, made in the name of industry at any cost.

A History of State Intervention

Britain has a history of state-led industrial policy, from the coal mines of the north east to the shipyards of the Clyde. However, this investment marks a significant escalation of government intervention, with rare earth minerals serving as a proxy for national security.

The risks and rewards of this investment are clear: on one hand, it provides an opportunity to tap into Britain’s own reserves of tungsten – crucial for our defence and nuclear industries. On the other hand, it raises questions about long-term reliance on foreign imports and whether we’re merely trading one set of environmental concerns for another.

As we hurtle towards a low-carbon future, Britain’s mining practices must keep pace with changing demands. We cannot simply stick plaster over deeper structural problems in our industries – instead, we need to address the root causes of our reliance on rare earth minerals and invest in genuinely sustainable solutions.