Elmet Group has signed a long-term agreement to purchase over 1,000 metric tonnes per year of tungsten concentrate from Tungsten West's Hemerdon Mine. This deal, supported by significant government investments from both the US and UK, aims to strengthen critical material supply chains and represents a substantial annual revenue stream for Tungsten West.
Elmet Group (ELMT) has entered a long-term offtake agreement with Tungsten West (TUN) for tungsten concentrate from the Hemerdon Mine. This is a significant development as it secures a critical material supply for ELMT, backed by a $450 million investment from the US Department of War, and provides a substantial, long-term revenue stream for Tungsten West, supported by a £71 million UK government investment. The agreement aims to strengthen allied supply chains for tungsten, a vital material for aerospace, defense, and other key industries. For traders, this represents a positive catalyst for both ELMT and TUN, indicating increased stability and growth potential, particularly as Hemerdon targets full-scale production by Q1 2027. The long-term nature of the agreement and government backing reduce supply chain risks for ELMT and provide financial certainty for TUN.