Diatreme Resources Limited (ASX: DRX) has received a significant boost for its Northern Silica Project (NSP), securing Major Project Status from the Australian Government. This designation, awarded by the Major Projects Facilitation Agency (MPFA), marks the NSP as the first project in Queensland to receive this recognition. The Major Project Status acknowledges the NSP’s alignment with Australia’s Critical Minerals Strategy and its potential for substantial regional economic growth in Far North Queensland.
The MPFA will provide coordination and facilitation support for Federal Government approvals, particularly concerning the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Diatreme is currently preparing an Environmental Impact Statement (EIS) for submission under the EPBC Act, seeking approval for the NSP. The company anticipates that the Major Project Status will streamline the permitting and development phases, aiding in offtake negotiations and project financing with joint venture partner Sibelco Asia Pacific.
Neil McIntyre, Diatreme’s CEO, emphasized the NSP’s strategic importance as a world-class high-purity silica resource with the potential to contribute to the energy transition, specifically in the solar photovoltaic supply chain. The project is expected to create over 120 direct local employment opportunities and additional business development prospects for the Hope Vale community and surrounding region.
The NSP is projected to mine silica sand at an initial rate of 3.75 million tonnes per annum (Mtpa) during Phase 1, with plans to expand to 6.25 Mtpa during Phase 2. The current established resource stands at 235Mt, with 151Mt slated for mining over a 25-year mine life. Located approximately 35 km north of Hope Vale and 14 km west of the Port of Cape Flattery, the NSP will include an onsite processing plant, conveyors, and maritime infrastructure to support export activities.
The project was previously designated a Coordinated Project by the Queensland Government in January 2024 and a ‘Project of Regional Significance’ in August 2023. Diatreme’s focus remains on community support, regional benefits, and strong returns for shareholders, with the Federal Government’s backing seen as a key milestone in the NSP’s development.
