The Tasmanian Government has taken decisive action to secure King Island jobs and support the long-term future of the Dolphin Tungsten Mine.
An agreement to convert debt-to-equity for Group 6 Metals (G6M) has meant that the Mine's operations will continue, ensuring ongoing economic activity for the island.
Minister Eric Abetz said the mine is a critical part of the King Island economy, supporting around 95 direct jobs and many local businesses.
"The Dolphin Tungsten Mine is a major employer on King Island and a key contributor to the local economy," Minister Abetz said.
"To give the mine the best chance of success, the Government is converting its existing $10 million loan into an equity stake in Group 6 Metals, as part of a broader turnaround plan developed by the company and its senior lenders."
The Government's decision strengthens G6M's financial position and allows for critical improvements to mine operations.
As part of our 2030 Strong Plan for Tasmania's Future, the Tasmanian Government announced plans to enable the State to co-invest in strategic projects that benefit Tasmania.
It follows recent legislative changes that enable the Government to stimulate investment and economic growth by co-investing in strategic projects that benefit Tasmania.
"Our support ensures the mine has the opportunity to succeed and continue creating jobs and economic activity for King Island," Minister Abetz said.
"This is intended to be a short to medium-term investment to help stabilise the mine through challenging global conditions.
"The Tasmanian Government remains committed to working closely with the company to support the mine's ongoing operations and ensure its long-term viability."
The equity conversion remains subject to regulatory and shareholder approvals.
