A Bass Strait mine on King Island, off Tasmania’s northwest coast, has officially reopened and is looking to expand. The Dolphin tungsten mine celebrated its return to commercial operations on August 24. The mine had previously operated between 1917 and 1992 but was closed due to low prices.
Tungsten, a rare metal used in various applications such as hardening wind turbines, bullets, and missiles, is considered critical by the Australian government. It is included in the country’s list of critical minerals, which comprises 26 minerals deemed essential to modern technologies, economies, and national security. Given that around 80 percent of the world’s tungsten supply is dominated by China, the reopening of the Dolphin mine is seen as a strategic move to diversify away from reliance on China.
Keith McKnight, the CEO of Group 6 Metals, which operates the mine, highlighted the strategic importance of tungsten in the geopolitical environment. The Dolphin mine is expected to have a 13-year life and produce an average of 2,300 tonnes of tungsten per year. It boasts one of the highest quality reserves of tungsten in the western world. McKnight also mentioned the potential for extending the mine’s operation to 20 years, with plans for exploration drilling and the potential establishment of a satellite mine 2km north.
Group 6 exports 15-20 percent of the tungsten to Europe, with the remainder going to Traxys for distribution in the USA and Vietnam. The Tasmanian government has provided the mine with a $10 million commercial loan and a $1.6 million grant to support the establishment of energy infrastructure required for restarting operations. Resources Minister Felix Ellis expects around $30 million to be returned to the state through mining royalties and other payments.
The reopening of the Dolphin mine has had a positive impact on the town of Grassy, where about a third of the mine’s workforce resides. The population of Grassy, which currently stands at about 120, was as high as 700 in the 1970s when the mine was at its busiest. The mine’s positive cash flow, expected later this year, will allow it to contribute more to infrastructure and housing initiatives on King Island, attracting and retaining skilled workers.
Local residents, such as Ernie Blakeman who runs a service station in Grassy, have welcomed the reopening of the mine as it has brought life back to the town and has the potential to stem the loss of young people from the community. With the support of the Meta Australian News Fund and The Walkley Foundation, this AAP article provides information on the Dolphin tungsten mine’s reopening and the implications for the local community and the broader Australian mining industry.