The Dolphin tungsten mine has officially re-opened, after being closed for three decades.
The mine is located near Grassy, a town on the south-east coast of King Island, an island in the Bass Strait between Victoria and Tasmania.
It first operated between 1917 and 1992, but then closed due to low tungsten prices, with approximately 50 per cent of the known mineral resource unmined.
Group 6 Metals, an Australian resources exploration and development company, has since recommenced operations at the mine and begun commercial production of tungsten concentrate this year.
Tasmanian Resources Minister Felix Ellis said the reopening of the Dolphin mine has been years in the making.
“With around 95 full-time jobs expected to be supported through this operation, the mine will be King Island’s single biggest employer, keeping roofs over the heads of local families and meals on their tables,” Ellis said.
“It also provides a further economic boost to the local community with flow through to local businesses. Around $5 million will go into the local economy directly through salaries alone and, for the broader state, around $30 million is expected to be returned to the Tasmanian taxpayer through mining royalties and other payments.”
Ellis said tungsten is a critical mineral the world needs due to it being essential for steelmaking, electronics and defence manufacturing, to name a few.
“The Dolphin mine is known for hosting the highest-grade tungsten deposit of significant size in the western world. In recent years the tungsten prices have surged significantly, and it is now classified as a critical mineral by the Australian Government, and others globally,” Ellis said.
“The world cannot do without critical minerals, and Tasmania is blessed to have a number of these minerals in abundance. This is also exactly why Tasmania is supporting industry by developing our own critical minerals strategy.”
The Australian Bureau of Statistics announced in June that exploration expenditure in Tasmania had grown significantly, with the latest ABS data showing $44.5 million was spent in the 12 months to March 2023.