Group 6 Metals is on track to start producing concentrate from the redeveloped Dolphin tungsten mine on King Island off Tasmania early next year as construction continues to progress.

In its latest quarterly activity report, the company said it overcame equipment supply chain challenges to secure a delivery date for a bulldozer in late January and site earthworks for the process plant are now nearing completion.

An engineering, procurement and construction (EPC) contract has been executed with Gekko Systems for the process plant with mechanical construction on-site due to commence in May.

Measures to minimise delays caused by COVID-19

Group 6 acknowledged the impact the pandemic has had on the construction industry and has implemented mitigation measures to minimise delays including committing early to long lead time items. It is also investigating alternatives to make up time in its project schedule due to the later-than-anticipated start of civil works.

Fly-in, fly-out (FIFO) accommodation is on schedule including the renovation of recently purchased houses and additional temporary accommodation units are due to be shipped in the next month.

Group 6 has strengthened its commitment to environmental, social and governance (ESG) at the Dolphin mine following the receipt of several regulatory approvals and its commitment to the Land Conservation Covenant.

A $2 million grant provided by the Tasmanian Government to Hydro Australia for upgrading the capacity of the 11-kilovolt line to the Dolphin tungsten mine will provide the mine with access to power from the King Island grid for construction and mining operations.

New appointments

Also during the quarter, the company appointed Keith McKnight as chief executive officer, Megan McPherson as chief financial officer and company secretary, and welcomed several new members to its site management team.

As at 31 March 2022, Group 6 Metals held $20.8 million in cash and had a balance of $10 million in debt and $32.5 million in undrawn debt facilities.