More jobs to go as mining company forced to make ‘difficult decisions’

Mining company Tungsten West is to cut more jobs, just weeks after announcing 42% of its workforce would be leaving.

It is reducing staff costs by 25% through redundancies, resignations, and reduced hours. The two rounds of job cuts will reduce the company from around 70 staff to 30.

Chief financial officer Nigel Widdowson is among those who will be leaving, and he has stepped down from the board with immediate effect after submitting his resignation.

The company is also in the process of agreeing deferred payment plans and restructuring supply agreements with a number of creditors.

It can now draw the second tranche of nearly £3m of the convertible loan notes after fulfilling the conditions required. An initial tranche of nearly £4m was issued in May.

Tungsten West is focused on restarting operations at the Hemerdon tungsten and tin mine in Devon.

Neil Gawthorpe, chief executive of Tungsten West, said: “Although the further evaluation of the financing structure of the business has led to some difficult decisions for the board, the cost savings this will generate, combined with the funds received from the Tranche B Notes, will provide crucial funding for planning and permitting activities, and enable us to ensure continued environmental compliance, which are vital steps towards restarting the Hemerdon mine.”

It has told shareholders that “spending priority has been given to activities relating to planning and permitting, environmental compliance and funding, as these are essential to the continued progress of the project”.

The share price of Tungsten West has fallen nearly 90% in the past year and the company’s market value was just £7m, based on last night’s closing share price of 3.75p.