Group 6 Metals Limited and Fortescue Future Industries (FFI) has signed a Memorandum of Understanding (MoU) to explore opportunities to potentially provide renewable energy, heat energy, and hydrogen to the Dolphin Tungsten Mine.
Under the agreement, Group 6 Metals and FFI will work to advance Group 6 Metals’ efforts to secure clean energy to meet its current and future power needs required for continuous mining operations.
The MoU serves as a precursor to the parties as they conduct due diligence activities related to the potential development of a wind farm, hydrogen plant and fertiliser production plant by FFI to supply Group 6 with the energy it needs.
Additionally, the companies plan to investigate if the potential wind farm and plans can support downstream processing to produce higher-value tungsten products.
In addition to supporting the Dolphin Tungsten Mine, the project’s surplus capacity will be used to produce green hydrogen and other downstream-related products such as green ammonia and urea.
FFI and Group 6 Metals are working on completing the associated commercial, planning, financial, technical and legal due diligence activities to move forward on the effort as soon as possible.
“We are delighted to partner with Fortescue Future Industries to work towards developing an affordable renewable energy solution to power the Dolphin Tungsten Mine. This aligns with, and advances us towards, our goal of sustainably recommencing production of tungsten in a manner which helps preserve the environment and reduces the Company’s carbon footprint. The opportunity to lower our reliance on diesel-generated power through a renewable energy solution represents a win for the King Island community and the Company alike,” Group 6 Metals Managing Director Keith McKnight said.
He added that the move to lower the mine’s reliance on diesel-generated power represents a victory for both the King Island community and the company as it positions the business as a global critical minerals leader with regard to genuine clean supply chains.
“This partnership with Group 6 Metals to look into powering its existing mine site with renewable energy is a really exciting prospect for us, as is the potential to use surplus power to produce green hydrogen and its derivatives and kickstart the local industry,” FFI Director East Coast and New Zealand Eva Hanly said.
