Tungsten West said it is looking for a new finance partner after deciding to go ahead with the development of the Hemerdon tin and tungsten mine in Devon
Soaring costs of materials meant the group had to redraw its plans but said the aim is now to focus on margin over volume by minimising capex and power utilisation.
Options are being looked at for redesigning the processing plant and selecting the most viable, sustainable option it added, while discussions are underway with financing partners to provide the additional capital required to fully execute the project.
Tungsten West added that underpinning its decision is the likelihood that the global move to electrification will mean strong demand for tungsten concentrate driven by the increase in its application in progressive technologies and use in defence.
“The group is strategically well positioned to deliver on its advances on the mine and plant upgrades through the remainder of 2022 and we look forward to successfully starting production in 2023,” said Robert Ashley, chairman.
Tungsten West closed the year to end March 2022 with cash of £28.8mln after a net loss for the year of £13mln.