A mining firm that is looking to revive production of the rare metal tungsten and tin in Devon has announced that it is the second largest supplier of the rare metal globally.
In its annual results for the year ended March 31 the AIM-listed company reported its JORC compliant Ore Reserve is estimated to be 101.2 million tonnes.
It also recorded an annual production of 2,900 tonnes of WO3 in concentrate and 310 tonnes of Tin in concentrate. The mine has a Life Mine of 27 years and an annual average steady-state mining rate of 3.5 Mt per annum. Bosses said they "assume" stockpiling lower grade killas ore for processing from year 17 onwards will "significantly" extend the mine's life.
Following a draw down of the Tranche A and Tranche B convertible loan notes of £6.95m bosses at Tungsten West said there is not any current commitment from existing or new noteholders to purchase any Tranche C notes.
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They said if the Group fails to find purchasers for the Tranche C notes, then, in the absence of other new sources of finance, it would no longer be able to meet its liabilities as they fall due in November 2023. The Board said it continues to implement a cost reduction programme, is proactively engaging with loan note holders and is reviewing other sources of funding to address the short-term liquidity needs of the business.
In August the mine said it will be making a further 25% reduction in staff costs. On June 2 the company told investors it expected a 42% reduction in headcount and monthly payroll costs via redundancy and resignations after it launched a review of operating costs, capital expenditure, and sale of surplus assets, amid “multiplying” energy, fuel and construction costs.
Neil Gawthorpe, chief executive of Tungsten West, commented: "I joined Tungsten West as CEO near the end of the financial year, but I have been involved with the Group throughout the reporting period as a consultant and advisor. I have enjoyed many years in the mining industry, both in operations and consulting, and I share the vision of our investors, employees and Government, that Hemerdon Mine can be a strategic asset for the Ƶ whilst creating long-term value and delivering strong returns for shareholders.
"Our project is exceptional to the Ƶ in that we have the benefit of a pre-built world class processing plant, a pre-stripped mine and fully permitted Mine Waste Facility ("MWF"). We are on the cusp of bringing mining back to the South-West, however, there remain some critical milestones to be met, which all bring their own unique challenges."
According to the it employed 61 staff, excluding directors, as of the end of September 2022. According to the report more than 90% of its employees live in Devon and Cornwall, with the average salary £53,000 - significantly above the average for the region.
Mr Gawthorpe added: "The Board acknowledges and appreciates the support received from shareholders following the decision to prioritise permitting. The Group will remain actively engaged with financial and strategic partners to explore all available funding options. Once the permitting process is complete, the Board is confident in their ability to secure the optimal funding package for successfully executing the project."
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