Carbine Resources (ASX: CRB) has achieved a crucial milestone with the issuance of a mining lease for its Muchea West silica sand project, located north of Perth. Granted by the WA Department of Energy, Mines, Industry Regulation and Safety (DEMIRS), the lease M70/1433 is for an initial term of 21 years. It covers a portion of the Muchea West project, which holds a resource of 110 million tonnes at 99.65% silicon dioxide. The remaining resources are situated on granted exploration licence E70/4905.
Muchea West, recognized for its high silica grade and low impurity levels, has faced development delays due to access issues. Carbine’s board emphasized that the mining lease is a significant step but further statutory approvals and consents, including environmental considerations related to the nearby Muchea Air Weapons Range, are still required before mining activities can commence. The company is actively collaborating with key stakeholders, including DEMIRS and the Department of Defence, to secure these necessary approvals.
Located approximately 40 kilometers north-north-east of Perth, the Muchea West project benefits from market access to the Kwinana bulk terminal via the Tonkin Highway and the Moora-Kwinana railway. Furthermore, Carbine has recently signed access agreements with landowners for its Down South silica sand project, enabling on-ground exploration activities. The global silica sand market is experiencing substantial growth, valued at approximately $18.7 billion in 2023 and projected to reach around $35 billion by 2032, with an annual compound growth rate of 7.7%. Asia-Pacific currently dominates the market, holding a 29.28% share in 2023.
