Business · Energy & Commodities · 1 hr ago
Tasmania to create $20m fund using returns from tungsten mine investment
The Tasmanian government will create a $20 million fund to help regional communities deal with major economic changes.
The money will come from returns on its investment in the Dolphin tungsten mine on King Island.
The government acquired a 12 per cent stake in the mine after converting a $10 million loan into shares in 2023.
The mine had reopened that year after being closed for more than two decades, and tungsten prices have since risen significantly.
The fund is intended to support economic diversification, workers changing jobs, new investment and community-led recovery.
It follows government support for several struggling businesses and the loss of more than 200 jobs when the Liberty Bell Bay manganese smelter closed.
Some proceeds from the mine investment will also go towards reducing Tasmania’s debt.
Tasmania will create a $20 million Recovery Fund for Regional Resilience using returns from its investment in King Island’s Dolphin tungsten mine.
The fund is intended to help regional communities respond to economic disruption, industry change and workforce impacts.
The government acquired a 12 per cent shareholding after a $10 million loan to the struggling mine was converted into shares.
Tungsten prices have since risen significantly, giving the investment a financial turnaround.
Proceeds from the mine investment will also go towards reducing Tasmania’s debt.
- Who
- The Tasmanian government is establishing the fund.
- What
- It will create a $20 million fund for regional resilience, financed using returns from its tungsten mine investment.
- When
- The announcement was reported on October 13, 2026.
- Where
- Tasmania, with the investment in the Dolphin mine on King Island.
- Why
- To help regional communities navigate economic disruption and attract new investment.
This story does not have two clearly opposing sides.
The Dolphin mine reopened with the help of a $10 million loan, and the loan was converted into shares, giving Tasmania a 12 per cent stake.
The Tasmanian government’s plan for a $20 million regional resilience fund was reported.
- Fund size
- $20 million
- Government shareholding
- 12 per cent
- Initial mine loan
- $10 million
- Mine
- Dolphin tungsten mine, King Island
- Mine owner
- Group 6 Metals
What people are saying
This fund is about transforming a one-off financial return into an enduring asset for regional Tasmania.
Our regional communities are at the heart of Tasmania's economic success and they deserve the confidence that comes from knowing support will be there when it is needed most.
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.
Sources
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