Dolphin Tungsten Mine Project Still on Track Amid COVID

Amid the COVID outbreak, Group 6 Metals' Dolphin tungsten mine project has experienced delays, with worker shortages and supply deliveries affected. However, mine construction manager Paul Richardson says the delays have been manageable so far.

He said, "We experienced some delays during this phase, mainly due to the impact of the outbreak, availability of personnel, and the restricted flow from other states to Kings Island. But it is manageable and so far we have been fortunate that only one staff member was quarantined, which later proved to be negative."

"Deliveries of material to the Dolphin tungsten mine have also been delayed." Mr. Richardson said, "We have definitely encountered changes in forecasted delivery times and a reduction in resources available for certain tasks."

"However, these were identified early and we had time to initiate contingency measures if necessary, such as identifying alternative suppliers or labor resources, or procuring ahead to secure supply for critical items." Despite the delays, the mine is expected to be in operation in the first quarter of 2023 - in line with previous assumptions.

While Mr. Richardson is concerned about the impact of future outbreaks, he says his company is well-positioned to meet those challenges. He says, "Like many others, we can't predict what impact a future COVID outbreak will have on local or supply-side programs."

"To date, the issues we have identified that have the potential to delay project completion have been mitigated by placing orders earlier for items with long lead times. In addition, we have contingency plans in place to address the results of the outbreak that we are currently seeing, such as travel restrictions, testing and quarantine requirements, labor availability, and delivery delays." He added.

Tungsten is the toughest metal known, with a melting point of 3,411 degrees Celsius and a boiling point of 5,500oC. The Dolphin tungsten mine project is located near the town of Grassy on the southeast coast of Kings Island, the westernmost large island in the Bass Strait. Grassy was historically a mining town that was developed primarily to service the Dolphin Mine, which produced scheelite until 1992.

King Island has a population of 1585 people according to the 2016 ABS Census. It is heavily developed for beef and dairy farming, seafood fishing, tourism and has a large kelp harvesting industry. The main commercial center is Currie, located on the west coast of the island and approximately 25km by road from the mining and port town of Grassy.

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