Tungsten West’s Strategic Position in Securing US-Sanctioned Supply Chain Financing

The global race to secure critical mineral supply chains has intensified as nations grapple with geopolitical tensions and the urgent need for energy transition. Tungsten West’s Hemerdon project in Devon, UK, now stands at the center of this strategic contest, having secured a non-binding $95 million Letter of Interest (LOI) from the U.S. Export-Import Bank (EXIM) under its Supply Chain Resilience Initiative (SCRI) and China and Transformational Exports Program (CTEP). This financing, if finalized, would not only accelerate the mine’s restart but also underscore its role in de-risking global tungsten supply chains from Chinese dominance.

A Geopolitical Imperative: Tungsten’s Strategic Value

Tungsten, a metal essential for high-strength alloys in defense, aerospace, and energy infrastructure, has long been dominated by China, which controls over 80% of global processing capacity. The Hemerdon project, however, could supply 20% of the world’s non-China tungsten output, a critical buffer against supply shocks [2]. This aligns with U.S. and EU efforts to diversify sources of critical minerals. The mine’s designation as a strategic asset under the EU’s Critical Raw Materials Act further cements its geopolitical importance [2].

The EXIM LOI, with its 15-year repayment flexibility and no requirement to tie funds to specific equipment, reflects a shift in U.S. policy toward supporting projects that enhance supply chain resilience. Unlike traditional financing models, which often restrict capital to machinery, this approach allows Tungsten West to allocate resources where they are most needed, such as infrastructure or workforce development [1].

Of Strategic Partnerships and Offtake Agreements

A key differentiator for Hemerdon is its binding offtake agreements with U.S. buyers, ensuring a stable market for its output. These agreements mitigate the risk of price volatility and align with CTEP’s goal of countering China’s export-driven competitive advantages [1]. For investors, this represents a rare combination of geopolitical tailwinds and commercial certainty.

The project’s readiness—fully permitted and construction-ready—further reduces capital risk. With production potentially commencing by late 2026, Tungsten West is now seeking $93 million in private investment to bridge the gap between EXIM’s conditional support and operational launch [2]. This creates an opportunity for early-stage investors to capitalize on a project with both strategic and financial upside.

Why Hemerdon Matters for Investors

The Hemerdon project exemplifies how supply chain resilience is no longer a niche concern but a core investment theme. As nations like the U.S. and EU enforce policies to reduce reliance on adversarial suppliers, projects like Hemerdon will become linchpins of global economic security. The 15-year financing horizon provided by EXIM also offers a buffer against short-term market fluctuations, making it an attractive proposition for long-term capital.

For investors, the risks are not negligible—mining projects face operational and regulatory challenges—but the strategic alignment with U.S. and EU priorities, coupled with strong offtake agreements, creates a compelling risk-reward profile. Hemerdon’s potential to supply 20% of non-China tungsten output positions it as a critical node in the global effort to diversify supply chains, a trend likely to accelerate in the coming decade.

Conclusion

Tungsten West’s Hemerdon project is more than a mining venture; it is a geopolitical asset in the U.S. and EU’s broader strategy to secure critical mineral supply chains. The EXIM LOI, with its flexible terms and focus on offtake security, underscores the project’s strategic value. For investors, this represents an opportunity to align capital with global resilience imperatives while tapping into a market poised for sustained demand.

Source:
[1] Tungsten firm could receive up to $95m from US agency ... [https://www.thebusinessdesk.com/south-west/news/27503-tungsten-firm-could-receive-up-to-95m-from-us-to-reopen-south-west-mine]
[2] Tungsten West's Hemerdon Mine Gains EU Strategic ... [https://minexforum.com/2025/07/02/tungsten-wests-hemerdon-mine-gains-eu-strategic-status-eyes-2026-restart/]