The state government has wiped $10 million of debt owed by the Dolphin Tungsten Mine on King Island, converting the loan into an ownership stake in the mine’s operator.
Business, Industry and Resources Minister Eric Abetz called the deal with Group 6 Metals strategic.
“Our support ensures the mine has the opportunity to succeed and continue creating jobs and economic activity for King Island,” he said.
“This is intended to be a short to medium-term investment to help stabilise the mine through challenging global conditions.”
The agreement preserves 95 existing direct jobs on the island.
Abetz said the debt conversion forms part of a “broader turnaround plan” developed by Group 6 Metals and its senior lenders.
The restructuring will strengthen the company’s financial position and enable operational improvements at the facility, Abetz said.
“The Tasmanian government remains committed to working closely with the company to support the mine’s ongoing operations and ensure its long-term viability,” he said.
The transaction still requires both regulatory approval and shareholder consent before completion.
