Australian resources exploration and development company Group 6 Metals (ASX:G6M) has received a $2 million grant from the Tasmanian government for upgrading power supply to the Dolphin Tungsten Mine.
The company reports the $2 million grant was to enable Hydro Tasmania to effect a grid connection and whatever upgrades and modifications were necessary to the existing high-voltage (HV) transmission line to Grassy, to provide the required level of power supply at Dolphin.
Due to several commercial and operational factors, Group 6 and Hydro Tasmania agreed that this was not the optimum solution, resulting in a decision by the company to provide power to the operations through a dedicated power solution as an interim solution.
This will allow the company time to investigate a longer-term permanent solution, whereby a ‘significant’ proportion of power will be sourced from renewable generation. Following negotiations with the government, it has been agreed that the unspent funds will now be redirected to the company to assist it in providing an independent source of power.
Group 6 reports the balance of grant funds of $1.624 million will be applied towards implementing a dedicated interim diesel power station onsite at Dolphin, as well as completing a feasibility study into the potential integration of renewable energy to complement the diesel-generated power supply.
In line with the company’s commitment to environmentally and socially sustainable development, Group 6 reports it is targeting to replace more than 50% of Dolphin’s initial diesel generation capacity with renewable power over the next 3 years, resulting in lower emissions and power costs.
The company is having advanced discussions with a ‘significant’ global participants in renewable energy technologies. The parties are working toward partnering in the development of a renewable power station to support the current operations at Dolphin, and the potential future downstream processing at the project site.
The company is having advanced discussions with a ‘significant’ global participants in renewable energy technologies
Group 6 sees this energy management plan as serving the best interests of all stakeholders and notes it will not impact current resourcing from Hydro Tasmania and its customers. The company also says it will benefit from a dedicated, and reliable energy source that will support steady state production of tungsten.
Group 6 Metals is an Australian resources exploration and development company focused on developing the Dolphin Tungsten Mine located on King Island in Tasmania. The company’s initial focus is producing a ‘high-grade’ tungsten concentrate, as well as value-adding the product for supply into the upstream tungsten industry.
Images: Group 6 Metals Ltd
