A $20 million Recovery Fund for Regional Resilience has been established using returns from a Tasmanian Government investment in the Dolphin Tungsten Mine on King Island.
Tasmanian Premier Jeremy Rockliff says the long-term fund is designed to help regional communities navigate economic disruption, employer closures, workforce impacts, and major industry changes, while attracting new investment.
“This fund is about transforming a one-off financial return into an enduring asset for regional Tasmania,” Rockliff says.
“Too often governments are forced to react after a major employer closes or an industry undergoes significant change.
“Instead, we are getting ahead of those challenges by establishing a fund that will help communities navigate economic disruption, attract new investment, and create new opportunities for the future.”
In 2025, the Tasmanian Government reached an agreement with mine owner Group 6 Metals (ASX:G6M) to convert a $10 million commercial loan into an equity stake. The state government previously provided the loan as the mine struggled to return to profitability following its 2023 reopening.
Proceeds from the investment will also contribute to reducing state debt.
The Dolphin Tungsten Mine supports around 95 direct jobs on King Island. The operation originally ran from 1917 to 1992 before closing due to low tungsten prices, prior to investors raising $20 million in 2022 to assist in restarting the asset.
Write to Paula Fabe at Mining.com.au
Main image: Tasmanian Government
