Tasmania to spend $75m windfall from mining shares sale

Summarised from 2 outlets · Updated 13 Oct, 07:02 · Archive

The Tasmanian government will spend a $75 million return on mining shares to create a regional fund and pay down debt.

The Tasmanian government has outlined spending plans for a $75 million windfall from shares in the tungsten mine on King Island in Bass Strait. The mine reopened in 2023 after the government converted a $10 million loan into shares, which have now appreciated significantly. Premier Jeremy Rockliff said the outcome 'has exceeded expectations' and confirmed the shares would be sold off gradually, as the government believes it should not hold mining shares long-term.

The $75 million will be divided into three allocations: $20 million for a regional 'future fund' to support communities experiencing economic disruption, $5 million for King Island's school, and $50 million to pay off state budget debt. The fund is intended to help regions respond to major industry change, the government says.

A prominent workers' union has criticised the fund as a political stunt, citing the timing alongside widespread public sector job cuts. Tungsten, used to make drills and milling cutters, is classified as a critical mineral by the Australian government. The Tasmanian government has invested heavily in critical mineral industries in recent years, also providing loans to Bell Bay Aluminium and Nyrstar's Hobart smelter.

How it is being reported

• Government to spend $75 million mining shares windfallA government has outlined how it will spend a significant return on investment from shares it acquired to help out a critical minerals mine.Perth Now · 13 Oct, 06:38
• Government to spend $75 million mining shares windfallA government has outlined how it will spend a significant return on investment from shares it acquired to help out a critical minerals mine.The West Australian · 13 Oct, 06:38

In this story: Tasmania · King Island · Jeremy Rockliff · Group 6 Metals · Rio Tinto · Bell Bay Aluminium · Nyrstar

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