Asked by: Perran Moon (Labour - Camborne and Redruth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of re-allocating a proportion of the National Wealth Fund for a new mineral exploration fund.
Answered by Darren Jones - Chief Secretary to the Treasury
The National Wealth Fund (NWF) is a publicly owned investor which provides a range of financing tools across the capital structure, including loans, guarantees and equity investments for projects which align with its mandate.
The NWF’s investment decisions are based on the Investment Principles set out in its Framework Document. Investments from the NWF focus on areas where an undersupply of private finance exists. It targets opportunities to crowd-in three times as much private capital as its own investment committed across its portfolio. Allocating grants is not within the remit of the NWF.
Earmarking investment amounts for certain sectors is not within the remit of the NWF either. Maintaining a broad balance sheet, allows the NWF to remain flexible and adapt to market requirements.
The critical minerals sector is a key market for the NWF, as seen with its equity investments in Cornish Lithium, and in Cornish Metals.