11th Oct 2022 17:40
(Alliance News) - Tungsten West PLC on Tuesday said its capital expenditure estimate for its Hemerdon mine is "significantly below" the projected forecast when the project was paused in April 2022.
The owner and operator of Hemerdon tungsten and tin mine in Plymouth said it had received its final capital expenditure budget from its engineering, procurement and construction management contractor, Fairport Engineering Ltd. From these, the company estimated a remaining capital expenditure budget of GBP31.5 million.
Tungsten West will immediately start placing orders for the remaining long lead time items in time for delivery during the first half of 2023 and anticipates the commissioning of the plant upgrades in the second quarter of 2023.
The company welcomed the UK government's intention to simplify and streamline the current planning process required for onshore renewable energy installation. Tungsten West is "actively pursuing" options for wind and solar power generation at the Hemerdon site and nearby.
Executive Vice-Chair Mark Thompson said: "Recent government policy announcements have included some welcome news for Tungsten West. The energy cap for businesses provides certainty over power costs for this winter and the reversion to a corporation tax rate of 19% is good news for shareholders.
"The announced intention to streamline planning requirements for the installation of renewables was of particular interest as we have an ambition to be a sustainable and ethical UK mine and this assists in the commercial case for building our own solar and wind capacity. Tungsten West is a nationally, even internationally, important mining project given China's dominance in this critical metal and the need for tungsten in the green energy transition: a planning system that supports domestic supply chains is good news for the manufacturing industry in the UK."
Shares in Tungsten West closed 2.0% lower at 24.00 pence each in London on Tuesday.
By Chris Dorrell; [email protected]
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