Diatreme inks offtake MoU
PERTH (miningweekly.com) – Silica sands developer Diatreme Resources has signed a memorandum of understanding (MoU) with photovoltaic- (PV-) grade glass manufacturer FLAT Glass over the offtake of high-purity low-iron silica from the Northern silica project (NSP), in Queensland.
The MoU, which would remain active for a period of 12 months, would include FLAT examining the potential to site onshore PV glass manufacturing in Queensland.
“We are highly encouraged that one of the world’s leading PV-grade glass manufacturers is negotiating directly with Diatreme over silica supply from our Far North Queensland project. This is a strong vote of confidence in the NSP and its capacity to meet FLAT’s highly exacting offtake requirements,” said Diatreme CEO Neil McIntyre.
“Diatreme’s potential supply of product for FLAT’s planned future expansion confirms our belief that the NSP is truly a world class project, with an important role to play in the global renewable energy drive. We look forward to progressing this agreement, cementing our project’s status as a major and sustainable supplier and delivering long-term jobs and other economic benefits to the Cooktown and Hope Vale region.”
The MoU follows a positive scoping study in June which estimated that the NSP could support a production rate of five-million tonnes a year over a 25-year period.
The scoping study estimated a post-tax net present value of A$830-million for the Northern Silica project, and an internal rate of return of 32%, with the pay-back period estimated at six years. The base case analysis estimated a capital cost of A$356-million, including a A$46.4-million contingency, to establish a three-million-tonne-a-year operation.
An additional capital investment of A$179-million will be required two years after the start of production to increase the run rate to five-million tonnes a year.
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