The revival of mining at Australia's largest tungsten deposit has resulted in a government windfall of $75 million and the creation of a regional "future fund".
However, a prominent workers' union has labelled the fund a political stunt arriving at the same time as widespread public sector job cuts.
The mine on King Island in Bass Strait reopened in 2023 after the Tasmanian government helped prop up operations with a $10 million loan that was converted into shares.
The government on Tuesday revealed the shares were now worth $75 million.
Some $20 million will be put into a fund to boost regional resilience, $5 million will go towards King Island's school and $50 million will pay off state budget debt.
"Our expectation … was to see the revival of the mine and for us to recoup the funds," Tasmanian Premier Jeremy Rockliff told reporters.
"It has exceeded expectations."
The shares are expected to be sold off gradually, with Mr Rockliff saying it was not the government's role to hold mining shares.
Used for a variety of purposes including to make drills and milling cutters, tungsten is classified as a critical mineral by the Australian government.
The state government has forked out substantially in recent years to keep mines and smelters afloat.
It loaned an additional $7.5 million to the tungsten mine, owned by Group 6 Metals, in 2025 and provided half of a $200 million package to Rio Tinto-owned Bell Bay Aluminium in October.
Tasmania also contributed $7.5 million towards a June 2026 funding package to keep Nyrstar's Hobart smelter alive.
The fund will support communities experiencing significant economic disruption and help regions respond to major industry change, the government says.
However, the Community and Public Sector Union said the announcement could not be reconciled with the government's plan to cut public sector jobs.
The government wants to cut about 1800 jobs over five years to address ballooning debt, which sat at $6.5 billion in June.
"(The) regional fund is little more than a stunt," union general secretary Thirza White said.
"You cannot claim to be strengthening regional Tasmania while cutting the very workforce that helps regional communities attract investment, support local businesses, develop industries and respond to economic challenges."