Cornish Metals gets £40.5m backing to revive tin production
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Cornish Metals has bagged a £40.5m funding injection as it looks to revive tin production at one of the county’s iconic tin mines.
The London and Canada-listed firm has got the backing from a group of investors including the battery metals investment vehicle launched by Sir Mick Davis, the former head of mining group Xstrata, which contributed £25m to the round.
Tin plays a key role in the electronics industry and electric vehicles, and Davis said that Cornish Metals’ South Crofty tin mine has the potential to meet an expected surge in demand over the coming years.
“The mine is expected to be one of the largest tin producers globally and to supply the needs of the UK market in entirety, thereby helping it to reach its de-carbonisation targets,” said Davis in a statement.
“Having previously operated until 1998, there is significant mine infrastructure still in place, most notably several mine shafts that can be used for future production and ventilation purposes.”
The firm will now use the money to ‘dewater’ South Crofty near Redruth, in Cornwall’s historic mining heartlands, with a firm decision set to be made on construction next year.
South Crofty was the last of the county’s working tin mines to close, when a slump in prices led it to shutter operations in 1998, putting an end to the centuries-old mining industry in the region.
Richard Williams, Cornish Metals chief executive, told the FT that the site’s history as a working mine put it in a strong position.
“It is a project that has got a long history of being an operating mine so a lot of the risks you might associate with a greenfield project is not there,” he said.
Cornish Metals is targeting first production by 2026 and will create up to 270 direct jobs and support a further 750 in the region.