Government grant redirected to King Island miner

Government money originally granted to Hydro Tasmania is being redirected to support a mining company which is working to restart production at its King Island tungsten operation. LATEST >

The Dolphin Mine on King Island

Government money originally granted to Hydro Tasmania is being redirected to support a mining company which is working to restart production at its King Island tungsten operation.

The Tasmanian Government funds had been awarded to the electricity generator to support infrastructure upgrades on the Bass Strait island.

Now, the $1.64m will go to Group 6 Metals to help it establish the energy infrastructure needed to restart mining operations at its Dolphin Mine at Grassy.

The mine previously operated between 1917 and 1992 and its closure, due to a crash in tungsten prices, saw workers leave the island looking for mining jobs in other places.

But 50 per cent of the resource was left in the ground and Group 6 Metals says it represents the highest grade tungsten deposit in the western world.

Energy Minister Guy Barnett said the company had committed to developing renewable energy solutions to support the Dolphin Mine’s future operations. Picture: Chris Kidd

The company’s redevelopment plan is for an open cut mine that will operate for eight years before mining moves underground for another six.

Energy Minister Guy Barnett said the company had committed to developing renewable energy solutions to support the Dolphin Mine’s future operations.

“The company has completed a concept study for the renewable energy project that is scheduled to be completed by early 2025. When implemented this new energy solution will provide over $8m in further investment into the mine, supporting the local community and economy on King Island.”

Group 6 Metals told the Australian Stock Exchange it would build a diesel power station before it completes that feasibility study into the potential integration of renewable energy on the site.

The Dolphin Mine on King Island

Then over the next three years, it will replace more than half of the diesel generation capacity with renewable power from a new station.

The company said King Island households would maintain full access to the island’s current energy supply.

Resources Minister Felix Ellis said the Dolphin tungsten project was already seeing significant success since being revived with the support of a $10m commercial loan to the company from the state government.

“The construction of the processing plant on King Island is nearly complete and is on track to be commissioned in April 2023, producing critical minerals for defence manufacturing and supporting some 75 full time local jobs,’’ Mr Ellis said.