Elmet Group signs tungsten offtake deal with Hemerdon Mine

The Elmet Group Co. (NASDAQ: ELMT) has signed a long-term tungsten concentrate offtake agreement with Tungsten West plc (AIM: TUN), covering production from the Hemerdon Mine in Devon, England, according to a press release from the company.

Under the agreement, ELMT expects to receive more than 1,000 metric tonnes per year of tungsten concentrate (WO₃ equivalent) from Hemerdon. The company said the offtake represents more than $230 million annually at current ammonium paratungstate (APT) tungsten prices. Both parties are aiming to increase production volumes over time.

Material will be converted into APT and downstream tungsten intermediates through ELMT's refining network and delivered to its U.S. manufacturing operations in Maine, Michigan, and Ohio, as well as its Schwabmünchen, Germany plant, pending the closing of a previously announced asset purchase agreement with OSRAM GmbH.

The offtake will be managed through Elmet Refining & Trading (ERT), a division established in connection with a $450 million investment from the U.S. Department of War announced September 14, 2026. The UK government's National Wealth Fund separately committed £71 million to Tungsten West, announced August 25, 2026.

Tungsten West has initiated processing at Hemerdon and is targeting a ramp-up to full-scale production by the end of the first quarter of 2027.

"Our agreement with Tungsten West further builds upon the landmark investment we received from the Department of War and advances our strategy to build a resilient critical materials supply chain," said ELMT CEO and Chairman Peter V. Anania.

Tungsten West CEO Jeffery Court said the agreement "solidifies our position as a leading Western producer of tungsten and enables us to contribute to the creation of a resilient tungsten supply chain for the U.S., UK and our other allies."

ELMT also announced it is postponing its previously scheduled Investor Business Update from September 24, 2026, citing recent developments, and said it intends to provide further scheduling information in the near future.

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