The offtake contract would run for an initial three-year period, and represents around 50% of the expected annual production from the Dolphin project.

“We are delighted to have finalised our offtake agreement for the Dolphin tungsten mine with Kalon. On a combined basis, we now have two agreements to deliver approximately 70% of the annual production that we anticipate from Dolphin,” said King Island Scheelite executive chairperson Johann Jacobs.

“Tungsten is increasingly recognised as a mineral of critical national and strategic significance. As reliable supply lines of tungsten become increasingly valuable, we look forward to achieving our operational milestones and delivering value for all stakeholders as we work towards resuming production in 2021.”

The mining lease covering the Dolphin project is valid until 2029, and environmental approval for the project has already been granted.