Group 6 Metals’ redevelopment of Dolphin tungsten mine ‘progressing quickly’ for 2023 restart

Group 6 Metals (ASX: G6M) has advised that activities at the Dolphin tungsten mine redevelopment in Tasmania are “progressing quickly and safely” and remain on track to achieve first concentrate production early next year.

The company is ramping up to peak construction activity on King Island mine site, with a focus on upgrading haul and access roads to enable crews to move through to the process plant area to complete mechanical installation works.

Run-of-mine pad earthworks and walls are progressing steadily, as is installation of crushing, screening and materials handling equipment and associated supporting structures.

The main process building has been erected and preparations are being made to lay the civil slab and plinths prior to equipment installation.

Most of the major equipment for the processing plant has either arrived at site or is still going through the testing stages at Gekko Systems’ Victorian factory ahead of being delivered to site.

Group 6 said work had started on construction of the project’s tailings storage facility (TSF), with vegetation clearances completed and earthworks ongoing in preparation for construction of the facility’s walls.

The TSF is being constructed on the original Dolphin project site in order to minimise disturbance to virgin vegetation, and Group 6 has opted to use materials reclaimed from the proposed mine pit shell.

Power supply

Group 6 is installing its own diesel power station to supply interim electricity to the mine and processing plant, with a staged integration of renewable power to mitigate the risk of power outages and improve operating flexibility.

The company decided that direct connection to the local grid would see the mine receive only a small percentage of the renewable energy capacity available on King Island, with most of the power being generated by diesel generators at the nearby Currie Power Station.

The transmission upgrade costs to provide permanent power to the mine site have been considered too costly and have made grid connection an uneconomic solution for the mine.

Group 6 has commenced working on a long-term permanent power solution for the Dolphin site, where a significant proportion will be sourced from renewable generation resulting in lower emissions and power costs.

Quickly and safely

Group 6 chief executive officer Keith McKnight said construction activities at Dolphin were “progressing quickly and safely”.

“We are very pleased with the progress of activities on site and remain confident that the Dolphin mine restart has been timed favourably, producing concentrate in the first quarter of 2023 and reaching steady state production shortly afterwards,” he said.

“Market conditions remain very positive with ammonium paratungstate prices remaining high and demand for tungsten forecast to increase significantly this year.”