In a sign of growing confidence in Tasmania, King Island Scheelite Ltd is moving ahead with plans to reopen a mine at Grassy on King Island.
On advice from the Director of Mines, I have issued a mining lease to Australian Tungsten Pty Ltd, a wholly owned subsidiary of King Island Scheelite.
This will enable Australian Tungsten to begin pumping water from the Dolphin Open Cut Mine, a key step if it is to resume mining operations.
While a final decision on reopening the mine may only be made later this year, the Liberal Government is committed to encouraging investment and jobs growth in the mining industry.
The development of a mine and processing facility on King Island would provide a major boost to the local economy and create many new jobs.
The plan for a four-year open cut operation based on the Dolphin deposit is the first stage of a much more extensive mining plan, with future stages involving a return to underground mining.
The price of tungsten, a strategically valuable commodity, has been increasing for the past five years and the company's projections suggest that, provided test drilling results are positive, the mine can return to profitable operation.
The King Island Scheelite mine closed in 1990, after a prolonged depression in the world tungsten market.
The entire operation falls within the previous mine footprint and will, therefore, not significantly increase the environmental disturbance at the site.