Tasmanian Government backs Group 6 Metals’ Dolphin tungsten operation further with grant to upgrade power supply

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By Lorna Nicholas - 
King Island Scheelite ASX KIS Dolphin tungsten Tasmania government loan

The $10m loan from the Tasmanian Government provides a clear signal to financiers of King Island’s Dolphin tungsten project’s critical standing and solid fundamentals.


Power supplies for Group 6 Metals’ (ASX: G6M) Dolphin tungsten mine will be ensured after the Tasmanian Government provided a $2 million grant to upgrade the transmission line to the project which is expected to reduce costs and improve its environmental performance.

The Tasmanian Government has provided $2 million to Hydro Tasmania, which will use the funds to upgrade the capacity of the 11kv transmission line to Group 6’s proposed mine on King Island.

“The company is extremely grateful for both the direct and indirect support it has received from the Tasmanian Government in developing the historic Dolphin tungsten mine on King Island,” Group 6 executive chairman Johann Jacobs said.

Without the transmission line, the mine would have solely relied on diesel generators for electricity.

“The ability to connect to the King Island grid supply (which incorporates a high percentage of renewable energy) is a fantastic result from both a costs and an environmental perspective.”

Additionally, the grant allows the necessary upgrades or modifications to ensure the proposed mine has the required level of power.

This provides security particularly when the new equipment such as crushers and processing plant require greater power than the site infrastructure can carry.

Dolphin redevelopment

Group 6 made the official decision to redevelop Dolphin last month after it locked-in all the required funding and secured shareholder approval.

In readiness for the decision, Group 6 had already placed orders for equipment with long lead times.

“Dolphin is a high-grade, low-cost project with a clear pathway to near-term production, and with our plans fully funded and permitted, we look forward to moving through the construction phase,” Mr Jacobs said.

Earthworks for the mine’s redevelopment will begin in the new year with civil works to follow.

Group 6 is targeting commissioning of Dolphin in early 2023 with first tungsten concentrate shipments expected shortly after.

From Dolphin, Group 6 initially plans to export about 275,000 metric tonne units per annum of tungsten trioxide concentrate.

With a reserve of 4.43 million tonnes at 0.92% tungsten trioxide, Mr Jacobs said the Dolphin hosted the Western world’s high-grade tungsten deposit of significant size.