KING Island’s Dolphin tungsten mine remains on track for re-opening and first ore production in the first quarter next year, according to a major update provided by the operator, Group 6 Metals, to the ASX last week.
“The Dolphin construction activities are progressing quickly and safely,” CEO Keith McKnight said. “Significant progress has been made on the mechanical installation for the process plant with installation of the ROM ore bin, crushing equipment, secondary screen, fine ore bin and associated conveyors being completed. “The main process building has also been erected in preparation for installation of the concentrate dressing, drying and bagging equipment. Frontline has completed the low voltage underground cable installation for permanent power connection to the MCCs. “Vegetation clearing and earthworks for the TSF wall are well advanced, with the installation of the stage 1 walls having now commenced.”
Mr McKnight added that market conditions remain very positive and demand for tungsten is forecast to increase significantly in 2022. “Due to high development and operating costs, several operating mines and proposed developments. tions or delayed development plans, which is expected to see supplies of WO3 remain tight in the near to medium term,” he said. “G6M has entered into binding offtake agreements for up 65% of the forecast production over the first four years of the mine life, underwriting a significant proportion of the company’s revenue over that period.
“We are very pleased with the progress of activities on site and remain confident that the Dolphin Tungsten Mine has timed its re-start favourably, producing concentrate in Q1 2023 and reaching steady state production shortly afterwards.” Mr McKnight also advised that the company has decided to develop their own power solution, rather than connecting to the King Island grid. “The company has elected to install its own dedicated diesel power station as an Dolphin in power play We are very pleased with the progress of activities on site and remain confident that the Dolphin Tungsten Mine has timed its re-start favourably interim solution, to supply power to the mine and process plant”, he said.
“Group 6 Metals has made this decision based on the following key points:
• Connecting to the King Island electrical grid would result in the mine receiving a small percentage of the current renewable energy capacity available on King Island, with most of the power being generated by diesel generators at the Currie Power Station.
• The transmission upgrade costs to provide the permanent demand to the mine site have significantly escalated making it an uneconomic solution for the mine.
• Reliability and operational flexibility requirements of the process plant to maintain steady state production are better achieved with a dedicated, off-grid power station. “The company has commenced work on a longer-term permanent power solution for the site, whereby a significant proportion will be sourced from renewable generation resulting in lower emissions and power costs.”
The King Island scheelite mine has been closed since 1990. At its peak in the 1970s it employed more than 500 people and was the major employer on the island. It is expected to employ around 60 people once back in full production.