Tin mine situated in Cornwall secures £56 million investment supported by the National Wealth Fund
The National Wealth Fund (NWF), a UK government-backed entity with £27.8bn to invest in tackling climate change and driving economic growth, has recently made a significant move towards boosting the nation's critical mineral production and supporting the green transition.
In a strategic move, the NWF has invested £28.6m directly into Cornish Metals Inc, a company focused on tin production. This investment follows an earlier investment into Cornish Lithium in August 2023, highlighting the NWF's commitment to the mining sector in Cornwall.
The funding will commence early project works, place orders on long-lead items, and complete key work programmes including the shaft refurbishment and mine dewatering at the South Crofty tin mine. South Crofty, a fully permitted underground mine with over 400 years of recorded production prior to its closure in 1998, hosts one of the highest grade tin resources in the world.
John Flint, CEO at the National Wealth Fund, emphasised the importance of critical minerals for the UK's transition to net zero and its growth mission. He stated, "The demand for these components is expected to outstrip supply in the coming years, driven in part by increased use across the renewables sector."
Critical minerals such as lithium and tin are considered essential for the net zero transition by the UK government. 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 government is under pressure to become less dependent on China for critical minerals. Analysts such as McKinsey have warned that many minerals and metals embedded in key lower-carbon technologies will face a shortage by 2030. Solar panels, wind turbines, electric vehicles (EVs), semi-conductors, and energy storage all require a supply of tin.
In addition to addressing the critical mineral supply gap, the NWF's investment in Cornish Metals is intended to create skilled and long-term employment. Vision Blue, a global commodities investment manager that also invested alongside the NWF, aims to accelerate the responsible supply of key metals and minerals for energy transition and decarbonization.
The 10-Year Infrastructure Strategy and Infrastructure Pipeline create frameworks to crowd in private finance alongside public funds, but do not mention a formal merger between NWF and UK Infrastructure Bank (UKIB). However, the government’s broader strategy suggests coordination or complementary roles rather than an outright merger.
In summary, the NWF is operational and actively investing to catalyse private green investment, while the government continues to build infrastructure and investment frameworks where UKIB and NWF likely play complementary but distinct roles. The NWF's investment in Cornish Metals is its second investment in critical minerals in Cornwall, demonstrating a commitment to the region and the UK's green transition.
- The National Wealth Fund (NWF) has demonstrated its commitment to environmental science, technology, and the renewable sector, as shown by their recent investment in Cornish Metals Inc, a company focused on tin production, which is crucial for the production of solar panels, wind turbines, electric vehicles, and energy storage.
- The NWF's investment strategy also focuses on finance and investing, as they aim to create skilled and long-term employment and accelerate the responsible supply of key metals and minerals for energy transition and decarbonization, aligned with the UK's goal of becoming less dependent on China for critical minerals.
