Cost-cutting nears completion at mining company
A major cost-cutting programme is nearing completion at Tungsten West, the mining company which is looking to restart production at its tungsten and tin mine in Devon.
The cost reduction programme at the Hemerdon mine will have resulted in a 42% reduction in headcount – around 25 people – through redundancy and resignations.
Capital expenditure for the front-end re-build has been scaled back to existing capital commitments for equipment purchase and low-frequency noise trial work.
Refurbishment work within the plant has also halted until the permitting and funding processes are complete.
Operating expenditure will be in line with previous guidance and remains concentrated on key workstreams associated with securing the section 73 planning permission and the outstanding permit, care and maintenance, compliance with existing obligations and securing funding.
Tungsten West has now completed processing of its legacy tungsten pre-concentrate and tin concentrate through commissioning of the refinery portion of its Mineral Processing Facility.
It earned £400,000 as it shipped four lots of material to an off-taker last week.
These activities form part of the company’s plan in continuing to move towards future regular production, liquidating assets left by the previous operator and making use of past materials which have already been crushed and separated.
Neil Gawthorpe, who became chief executive of Tungsten West earlier this year, said: “We are excited to announce the interim recommencement of operations at the Hemerdon mine.
“This small-scale production of tungsten and tin is a mere indication of what can be achieved once the mine is fully re-opened.”