PERTH (miningweekly.com) – Tungsten developer Group 6 Metals has inked a memorandum of understanding (MoU) with green energy developer Fortescue Future Industries (FFI) to explore the use of renewable energy, heat energy and hydrogen at the Dolphin tungsten mine, in Tasmania.
Under the terms of the MoU, FFI will prepare concept and feasibility studies, with the two companies working to complete commercial, planning, financial, technical and legal due diligence activities, and subject to the outcome of these, progress to definitive agreements as soon as possible.
“We are delighted to partner with FFI to work towards developing an affordable renewable energy solution to power the Dolphin tungsten mine. This aligns with, and advances us towards, our goal of sustainably recommencing production of tungsten in a manner which helps preserve the environment and reduces the company's carbon footprint,” said Group 6 Metals MD Keith McKnight.
“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.
“As permission has been received to repurpose the grant funds provided by the Tasmanian government to Hydro Tasmania to upgrade the connection between the Dolphin tungsten mine and the King Island energy grid, we expect to keep costs at a minimum as we progress due diligence and thereafter towards definitive agreements with FFI. We are also excited to further investigate the potential that this project could unlock for the company to expand into developing value-added products beyond tungsten concentrate.”
McKnight said that the company expected that developing a renewable power solution to extend its competitive advantage beyond the high grade and long life of the Dolphin deposit and into the realm of 'Green Tungsten' would position the company as a global critical minerals leader with regard to genuine clean supply chains.
Group 6 Metals earlier this year increased the cost estimate for the Dolphin project from A$241-million to A$300-million, with the project expected to have an initial 14-year mine life at a processing capacity of 400 000 t/y.