Legislative Council, Thursday 13 March 2025

Ms FORREST question to the LEADER of the GOVERNMENT in the LEGISLATIVE COUNCIL, Mrs HISCUTT

With regard to the government's equity share in the Group 6 Metals Dolphin Tungsten Mine on King Island:

(1) What does this equity share provide to the government;

(2) How are Mineral Royalties calculated; and

(a) has this changed with the taking of an equity share by the government?

ANSWER

Madam Deputy President, because your good self is in the chair at the moment, I do have an answer for the member for Murchison. I might just read the question and the answer, if that is okay.
The question that the member for Murchison would have asked is, with regards to the government's equity share in the Group 6 Metals Dolphin tungsten mine on King Island.

(1) What does this equity share provide to the government?

(2) How are mineral royalties calculated?

(2)(a) Has this changed with the taking of an equity share by the government?

The answer is -

(1) This equity conversion will provide to government ordinary shares in the company, Group 6 Metals Ltd, to the value of the amount of debt owed to the government, which is approximately $10.49 million. This is subject to the shareholder and regulatory approval. The full details of the equity conversion will be released by the company as part of its notice of extraordinary general meeting to consider the full capital restructure. Due to ASX listing rules, being that Group 6 Metals is a publicly listed company, certain information cannot be disclosed until released to all shareholders.

A private briefing can be arranged for the member, if desired. Let me know if you would like to do that.

(2) Rent and royalty payments requirements are prescribed under the Minerals Resource Development Act 1995. Tasmania operates under a two tiered system where royalty is paid either as a percentage of net sales and profit ad valorem or at a specific rate which relates to construction and industrial minerals. The ad valorem system operates on the metallic minerals produced, so that could be lead, gold, nickel, tin or tungsten. The two tiered system means that the state receives increased royalties during times of high commodity prices and company profits and lower returns when prices are low. There is no change with regards to royalty payments because of the equity share. Mineral Resources Tasmania will continue to collect royalties from all mines, as normal.