Diatreme Resources’ Northern Silica Project Gets Major Project Status

In what Diatreme Resources (ASX:DRX) is calling a "significant milestone," the Australian government's Major Projects Facilitation Agency has given major project status to its Northern silica project.

According to the company's Tuesday (June 17) release, the award recognises the asset's alignment with the development of Australia’s critical minerals sector, in line with the Australian Critical Minerals Strategy.

Northern is located in Queensland, approximately 35 kilometres north of Hope Vale township and 14 kilometres west of Port of Cole Flattery. It is the first property in Queensland to receive major project status.

It joins 18 projects in other Australian states and territories with the designation.

The project has an expected initial silica sand mining rate of 3.75 million tonnes per annum (Mtpa) during Phase 1, which will last two years, with a possible expansion to 6.25 Mtpa over its remaining 23 year life.

Diatreme CEO Neil McIntyre said the designation will assist the project through its final permitting and development phases. The firm is currently in the midst of entering offtake negotiations and embarking on project financing initiatives with joint venture partner Sibelco Asia Pacific, a global materials solutions provider.

“The award of Major Project Status is an important recognition of the NSP’s strategic importance as both a world-class high purity silica resource, and its ASX Page 2 of 5 potential to directly contribute to the energy transition, specifically the globally important solar photovoltaic supply chain powering the clean energy revolution," McIntyre noted.

Prior to this designation, Northern was declared a coordinated project by the Queensland government in January 2024.

The project has an established resource of 235 million tonnes, with 151 million tonnes slated for extraction to support its initial 25 year life. Environmental impact statement and approval applications are currently underway.

Other recently announced major projects in Australia include the Western Green Energy Hub and VHM's (ASX:VHM) Goschen rare earths mineral sands project, both declared in February of this year.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.