Cornwall tin mining South Crofty rebirth gets huge injection of public cash

The resurgence of mining in Cornwall has gained a massive cash injection of public funds. South Crofty's return as a viable tin mine has taken a "massive leap forward" thanks to an investment of almost £30 million. Cornish Metals Inc, the mine's owner, hopes to restart tin production by the end of 2027 with the creation of around 300 jobs.

The National Wealth Fund (NWF) - an investment company owned by the government - announced a £28.6m direct equity investment into Cornish Metals yesterday (Tuesday, January 28) as part of a £56m fundraising bid by the company to continue its "strong momentum" in reopening the Pool mine. South Crofty, which dates back to 1592, was Britain’s last working tin mine, closing in 1998 following a slump in tin prices.

There has since been a resurgence in the need for tin as it is used in electronic devices including electric vehicles. Cornish Metals estimates the mine could still yield 80,000 tonnes of the metal.

The company stated: "We are pleased to announce that we have successfully concluded the placing to raise gross proceeds of approximately £56m. The fundraise is being led by the National Wealth Fund who conditionally participates for up to £28.6m and our largest existing investor Vision Blue Resources who has also conditionally agreed to commit £18.1m. The balance of the funds are anticipated to come from other existing investors, a majority of the directors, and a placing on the UK stock market."

Chancellor of the Exchequer Rachel Reeves has welcomed the move. She said: "Growth is this Government's number one mission and we're going further and faster to kickstart our economy so that we can put more money in people's pockets. This is just the kind of investment that will help us do that, not only supporting the growth of the Cornish mining sector, but creating high-quality jobs and opportunity for the region and beyond."

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The National Wealth Fund, formerly known as the UK Infrastructure Bank, is an independent body owned by the Treasury with a £27.8 billion budget “to help crowd in private investment and drive growth across the UK”. In 2023 it invested in Cornish Lithium, which is extracting the battery metal at sites in the Duchy.

The South Crofty news has been welcomed by the area's Labour MP Perran Moon, who claimed: "Under this Labour Government, Cornish tin mining is back."

He said: "It’s the news we’ve been waiting for, for months. The Cornish Metals management team have been working tirelessly to secure the investment to support South Crofty’s future as a viable tin mine once again.

"Although the National Wealth Fund makes up a sizeable chuck of the investment, it’s not just about that £25m Government investment. Because South Crofty now has the backing of the National Wealth Fund, which is owned by the Treasury, it acts like a stamp of approval from Government and has signalled to private investors that the project is of nationally significant importance to the UK economy. So private investors can pile in to support Cornish Metals too."

Mr Moon added: "After 27 years, it’s a massive leap forward towards tin being brought to the surface of a Cornish mine once again, with hundreds of new, high skilled, secure jobs being created locally."