The company that plans to mine tungsten on King Island has signed a $49 million processing plant contract and plans to ship the first batch in early 2023.

Group 6 Metals Limited-formerly known as King Island Scheelite Limited-told the Australian Securities Exchange that it has signed a construction contract with Ballarat-based processing and low-energy mining solutions company Gekko Systems for design, procurement, The construction and commissioning of the processing plant and related facilities is close to the Dolphin Mine in Grassy.

The mine has been sealed for decades and is expected to create approximately 90 full-time jobs during construction and approximately 55 during operation.

Group 6 has been working on potential mining in Dolphin for many years, and some people on the island wonder if this will happen.

Kings Island Mayor Julie Arnold (Julie Arnold) said: "Despite all the financing news and everything else, there is a feeling that it will not happen."

She said that on Tuesday night, the mining company held a public rally, accepted employment applications and "gave a great speech," and the situation has changed significantly.

"They were clear, transparent and answered all questions..." Arnold said.

"This makes many people in our community very happy, because these people will do what they say and become a good corporate citizen."

Sydney-based Group 6 said the contract expects the facilities to be commissioned in the first quarter of 2023.

"According to this time, Dolphin Mine's first batch of concentrates to customers will also be shipped in the first quarter of 2023," it said.

"For the past three years, the company has been working with Gekko and co-developed a process that was developed after extensive testing at the ALS laboratory in Burnie, Tasmania."

Group 6 stated that it plans to start earthwork in the first quarter of 2022, and that civil engineering will begin soon.

Gekko Chairman Elizabeth Lewis-Gray said that tungsten is a rare metal with strategic significance.

"It is a hardened material, and most of its products are used in the production of tungsten carbide and other products. Tungsten carbide is used to extend the service life of products such as wear-resistant parts and cutting tools.

"This is an important resource development project as well as an important project in Tasmania and Victoria.

"The Gekko team is honored to have the opportunity to collaborate and provide Group 6 Metals with high-quality, locally designed and built processing plant solutions."

Group 6 says its new name is to commemorate tungsten, because tungsten is part of Group 6 of the periodic table.

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