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[Ferro-Alloys.com] WEAK prices are putting a dampener on hopes of a speedy return to tungsten mining on King Island.

“Tungsten markets remain depressed, with the last six months recording the lowest prices in more than nine years, driven largely by lack of demand,’’ King Island Scheelite Limited said in its report for the March quarter, released on April 29

It said the  price of ammonium paratungstate - used as the tungsten concentrate benchmark price - had varied from a high of $43,600 per tonne to a low of $23,000 per tonne in the last nine years, and was currently at $23,800 per tonne.

“Although this price is above our anticipated production costs, financing the project - both debt and equity - would be extremely difficult and risky,” the report said.

The company wants to mine at the old Dolphin Mine, at Grassy.

It said it met the Environment Protection Agency and the King Island Council during the quarter and after it to agree on any amendments needed to previously granted environmental approvals.

It said agreement on any changes was expected soon, which would allow any extra studies to start.

Its activities in the quarter also included continuing work on a definitive feasibility study, in preparation for raising funds.

The company had $1.3 million in cash on March 31.

That was down by $200,000 for the quarter, dues to administration and exploration and evaluation costs.

Dolphin has not been mined since 1990.

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• [Editor:Jiang Li Juan ]