THE REBIRTH of King Island’s tungsten mine will take another step forward today with the official opening of the G6M Dolphin Mine at Grassy.
Mine management, Federal and State MPs and stakeholders have descended on the island for the ceremonial sod turning.
Group 6 Metals chairman Johann Jacobs said the mine had attracted investment of more than $90m.
“This includes support from the Tasmanian Government with $10m loan from the Tasmanian Development Board and $2m in power system upgrades through Hydro Tasmania,” Mr Jacobs said.
“The project will deliver significant financial royalties, economic activity and social dividends to King Island.
“The reopened Dolphin Mine will provide significant expansion of regional jobs with an additional 75 families to be located on King Island.”
An event was held in Hobart yesterday to mark the project’s commencement. State Growth Minister Roger said the mine reactivation would create an estimated 90 full-time equivalent jobs during construction and around 60 ongoing full-time equivalent jobs when operational.
“This is exactly the sort of project we need to boost confidence and business activity in regional Tasmania,” Mr Jaensch said.
“I commend G6M for their determination to get the project started and the King Island community for their unwavering support.”
Mr Jacobs paid tribute to Mr Jaensch and Premier Peter Gutwein, Minister Guy Barnett, the Coordinator General’s Office and the Office of Mineral Resources for their support.
“Additionally, the Federal Government’s support has been significant and we continue to work with the Member for Braddon Gavin Pearce, Resources Minister Keith Pitt through the Critical Minerals Facilitation Office and the Assistant Minister for Forestry and Fisheries Senator Jonathon Duniam in ensuring that Tasmania and Australia participate in this very important global and strategic resource sector.”
The Dolphin Tungsten Mine operated between 1917 and 1992, when it was closed due to extremely low tungsten prices, rather than a lack of reserves.
At that time, about half of the known resource was yet to be mined.
Two mines were operated, the larger Dolphin mine and the satellite Bold Head Mine.
Over the last few years, G6M has concentrated on optimising a redevelopment strategy for the Dolphin Tungsten Project.
Site works have been underway since the start of the year and several information sessions have been held for the community.
Recruitment has also begun in earnest.
Tungsten is a critical industrial metal with an element of great economic importance and King Island Scheelite plans to resume operating an an open cut mine in Grassy producing 400,000 tonnes of ore per annum.
The Dolphin Tungsten Project is expected to produce first concentrate in the March quarter of 2023.
Scheelite is a critical mineral due to its importance in everyday life through the manufacture of all transport modes, production of oil and gas and as a key input to the defence industry.
Most of the world’s supply comes out of China.
G6M will be crucial for supplying high grade Tungsten to the western world. The price of tungsten increased significantly during 2021, increasing by 36% since 1 January 2021 to US$318 per metric ton unit (10kg), reinforcing the critical nature of the metal.