The new Recovery Fund for Regional Resilience will be capitalised from returns on the state government's $10 million investment in the King Island tungsten mine, which has experienced a significant financial turnaround since reopening in 2023.
The Dolphin mine, owned by Australian company Group 6 Metals, is the country's largest tungsten deposit. It had been shut for more than two decades due to low tungsten prices. The government's initial $10 million loan helped reopen it in 2023, and was later converted into shares, giving Tasmania a 12 per cent stake. The state also lent the mine a further $7.5 million last year.
Tungsten is classed as a critical mineral used in heavy machinery and defence manufacturing.
Premier Jeremy Rockliff said the investment allowed the government to reinvest a significant portion of the windfall back into regional communities.
“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,” Mr Rockliff said.
“This fund is about transforming a one-off financial return into an enduring asset for regional Tasmania.”
The fund is designed to support communities hit by economic shocks, including major industry change, employer closures and workforce impacts, and to back economic diversification, workforce transition, investment attraction and community-led recovery.
The announcement follows a difficult period for Tasmanian industry, with the government stepping in financially to save King Island Dairy, and industrials Bell Bay Aluminium and Nyrstar from collapse, as well as the loss of more than 200 jobs after Australia's last manganese smelter, Liberty Bell Bay, shut down.
“Too often, governments are forced to react after a major employer closes or an industry undergoes significant change,” Mr Rockliff said. “Instead, we are getting ahead of those challenges.”