Tasmania to use $75m mining windfall for regional fund

The Tasmanian Government has announced it will use a $75 million windfall from its investment in Group 6 Metals to fund regional recovery and reduce state debt. The windfall originated from a $10 million loan provided in 2023 to support the reopening of the Dolphin tungsten mine on King Island, which was later converted into an equity stake.

The government plans to allocate $20 million to a new Recovery Fund for Regional Resilience, designed to help communities manage economic disruptions, workforce transitions, and industrial changes. An additional $5 million is earmarked for upgrading the King Island District School, while the remaining $50 million will be used to pay down state budget debt.

While Premier Jeremy Rockliff described the move as transforming investment success into enduring regional assets, the announcement has faced criticism. The Community and Public Sector Union characterized the fund as a “political stunt,” noting the timing coincides with government plans to cut approximately 1,800 public sector jobs over the next five years to address a $6.5 billion debt.