President Donald Trump’s administration is understood to be eyeing up a potential £116million investment in a Cornish tin mine, which would provide a significant boost the local economy.
Cornwall’s historic South Crofty tin mine could be revived with backing worth $225million (£166million) from the United States, potentially bringing 300 jobs to the area near Pool village.
The mining facility, which traces its origins to the 17th century, has remained dormant since shutting its doors in 1998 despite multiple revival attempts over the years.
Cornish Metals, the company that owns the site, announced on Thursday that America’s official export credit agency had sent a letter expressing interest in financing the project’s development.
Donald Trump’s administration is eying up a significant investment in a Cornish tin mine
|
GETTY
However, any funding would be conditional on the mine directing its tin output to American markets, given Washington’s classification of the metal as strategically vital.
Tin plays a crucial role in soldering and appears in virtually all electronic devices, from electric vehicles to solar panels.
The metal serves as an essential component for attaching semiconductor chips to circuit boards, and demand has soared alongside the explosion of data centre construction fuelling artificial intelligence development.
Its market value has climbed dramatically over the past decade, rising from roughly $16,000 per tonne in 2016 to exceed $50,000 at the beginning of this year.
Donald Trump wants the US to focus on dealing with the threat of China, with Europe taking more responsibility for its own security | REUTERS
Currently, approximately two-thirds of global tin extraction occurs in China, Myanmar and Indonesia, regions where supply chain vulnerabilities and allegations of child labour have raised persistent concerns.
Don Turvey, chief executive of Cornish Metals, described the American interest as “a testament to the quality and strategic importance of South Crofty and its potential to become the first new tin producer in the western world”.
The company’s shares rose by almost seven per cent on Thursday following the announcement.
Notably, the project has already secured £28.6million from the UK government in 2025 to assist with reopening efforts.
Rachel Reeves suggested the mine could be reopened and create hundreds of jobs last year
|
GETTYChancellor Rachel Reeves estimated last summer that the mine could ultimately sustain around 1,300 jobs across the broader region, extending its economic impact well beyond the 300 positions directly created at the site itself.
The potential Cornwall investment comes amid a broader American push to reduce reliance on Chinese-controlled minerals.
A US-led summit on Wednesday brought together 50 nations and resulted in numerous agreements targeting China’s dominance over more than 25 critical elements.
State Secretary Marco Rubio convened the gathering, where the US state department signed 11 bilateral arrangements
Marco Rubio convened the meeting between countries over critical minerals
|
REUTERSThe EU and America also pledged to finalise a memorandum of understanding within 30 days, while both will collaborate with Japan on expanding supplies.
Patrick Schröder, a senior research fellow at Chatham House’s Environment and Society Centre, observed that speeches by Rubio and Vice-President JD Vance revealed Washington’s primary motivation.
He noted: “Although they didn’t say it explicitly, it is still America first. It was framed as ‘America needs your help’. There was no mention of renewables.”
