Tasmania turns tungsten mine loan into equity, creates $20 million regional resilience fund
The Tasmanian government converted a $10 million loan to the King Island tungsten mine into a 12% shareholding, generating a windfall that will seed a $20 million fund to help regional communities cope with economic shocks.
In 2023 the Tasmanian government stepped in with a $10 million loan to rescue the Dolphin tungsten mine on King Island after its owner could not meet repayment obligations. The loan was later converted into a 12% equity stake, giving the state a share of the mine’s recent financial turnaround as global tungsten prices surged. From this windfall, Tasmania will create a $20 million Recovery Fund for Regional Resilience to aid communities hit by major industrial changes, employer closures, or workforce impacts, and to draw new investment to the region.
Premier Jeremy Rockliff highlighted that the fund will also contribute to lowering the state’s projected near-$10 billion debt ceiling. The move follows similar interventions in King Island Dairy, Bell Bay Aluminium and Nyrstar, and follows the loss of over 200 jobs after the Liberty Bell Bay manganese smelter closed.
Why it matters
The investment turns a rescued mine into a financial resource that can buffer Tasmanian regions against future economic disruptions.
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