The Tasmanian Government has issued a new $7.5 million loan to Group 6 Metals (G6M) to help stabilise operations at its Dolphin tungsten mine on King Island.
The financial support follows the Tasmanian Government’s recent conversion of a $10 million loan into equity, giving it a 12 per cent stake in G6M.
A Tasmanian Government spokesperson told the ABC the funding was approved because the mine is “critical” to the region’s economy and employment.
“The $7.5 million loan was an important element of the business transformation plan that aims to deliver operational improvements to mining and processing activities to achieve profitability and growth, as the demand for tungsten continues to grow,” the spokesperson said.
“The loan was independently assessed and recommended by the Tasmanian Development Board as being in the best interests of the mine, the Tasmanian mining sector and the King Island community.”
The Tasmanian Government approved the load at 12 per cent interest over a two-year period. It does not require additional budget funding, with the money coming from Tasmanian Development and Resources’ borrowing facility.
Tasmanian Business, Industry and Resources Minister Eric Abetz reaffirmed the State Government’s support of the mine in February following the initial $10 million loan.
“The Dolphin tungsten mine is a major employer on King Island and a key contributor to the local economy,” he said.
“This is intended to be a short to medium-term investment to help stabilise the mine through challenging global conditions.”
According to G6M, Dolphin hosts the highest-grade tungsten deposit of significant size in the Western world. It first operated from 1917 to 1992 before G6M recommenced operations in 2023. The mine currently employs about 95 people.
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