Cornish tin mine raises £56m with National Wealth Fund backing
Cornwall's South Crofty tin mine has raised £56m with the backing of the UK's newly launched National Wealth Fund and a commodities investment manager, marking a significant boost to the UK government's ambition to crowd in private investment into UK green infrastructure.
The National Wealth Fund (NWF) accounted for a £28.6m direct equity investment into Cornish Metals Inc.
It invests alongside Vision Blue, a global investment manager specialising in commodities which aims to accelerate the responsible supply of the key metals and minerals necessary to facilitate the energy transition and decarbonise existing industrial processes.
The financing supports Cornwall’s mining sector and builds 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 essential for the net zero transition.
Solar panels, wind turbines, electric vehicles (EVs), semi-conductors 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.
Analysts such as McKinsey have warned that even with the current decarbonisation trajectory trending toward 2.4°Celsius, the supply of many minerals and metals embedded in key lower-carbon technologies will face a shortage by 2030.
The EU’s Critical Raw Materials Act identifies 34 critical raw materials that are expected to grow exponentially in demand but have complex production requirements and thus face a higher risk of supply issues.
The UK’s own Critical Minerals Strategy, first published in 2022, aims to accelerate growth of the UK’s domestic capabilities, collaborate with international partners, and enhance international markets.
The UK government is also under pressure to become less dependent on China for critical minerals, with thinktanks such as Labour Together urging the government to de-risk supply chains by working with other countries.
The £56m funding round for Cornish Metals Inc aims 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 investment is subject to the requisite shareholder approvals in March 2025.
John Flint, CEO at 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.”
Wholly owned and backed by the UK treasury, but operationally independent, the NWF has £27.8bn to invest in “tackling climate change and driving regional and local economic growth” and aims to crowd in £3 of private investment for every £1 committed.
