Fortescue, Group 6 Metals to investigate “green tungsten” viability

Group 6 Metals and Fortescue Future Industries have announced a non-binding memorandum of understanding, enabling the pair to explore using renewable energy, heat energy and hydrogen at the Dolphin Tungsten Mine on King Island, Tasmania.

Group 6 is currently redeveloping the mine, which it owns 100 per cent of, and which has been closed since 1992. 

“The opportunity to lower our reliance on diesel-generated power through a renewable energy solution represents a win for the King Island community and the Company alike,” said Keith McKnight, Group 6 Metals Managing Director, in a statement on Tuesday.

“We expect developing a renewable power solution to extend Group 6 [Metals’] competitive advantage beyond the high grade and long life of the Dolphin deposit and into the realm of ‘Green Tungsten’, positioning the Company as a global critical minerals leader with regard to genuine clean supply chains.”

According to Group 6’s website, it intends to resume production at the mine in Q1, 2023, initially to produce high-grade tungsten concentrate, followed by value-added products. 

The MoU will be followed by due diligence activities “relating to the potential development of a suitably sized wind farm, hydrogen plant and fertiliser production plant by FFI,” the renewable energy subsidiary of Fortescue Metals Group.

No timeline was given regarding the potential project. 

Group 6 said that FFI would “undertake the preparation of a concept and feasibility studies” and the pair would “endeavour to complete commercial, planning, financial, technical and legal due diligence activities” and then, ideally, “progress to definitive agreements as soon as is reasonably possible”.

Picture: The Dolphin site (credit Group 6 Metals Limited/Twitter)