Wayne Swan-chaired silica miner Diatreme wins major project status

Wayne Swan-chaired Diatreme Resources has won major project status from the federal government for its silica sands project in Far North Queensland.

Cape Flattery in Far North Queensland. Picture: Kerry Trapnell

Wayne Swan-chaired Diatreme Resources has won major project status from the federal government for its silica sands project in Far North Queensland, in growing recognition of the strategic importance of the critical mineral in solar panel production.

Diatreme chief executive Neil McIntyre said the designation for the Cape Flattery project through the Major Projects Facilitation Agency would help co-ordinate support for federal government approvals and relevant state-level agencies. It is the only Queensland mining project to be elevated to the list, which encompasses projects with a capital investment over $50m that are facing complex regulatory challenges.

“The award is an important recognition of the project’s strategic importance as a world-class high purity silica resource,” Mr McIntyre said. “Its potential will directly contribute to the energy transition, specifically the globally important solar photovoltaic (PV) supply chain powering the clean energy revolution.”

Diatreme last year acquired smaller rival Metallica Resources, giving it control of a larger tract of silica sand reserves at Cape Flattery, located about 200km north of Cairns.

Diatreme, which has been chaired by the former Federal Treasurer and current ALP president Wayne Swan since 2021, at the time faced a revolt from Metallica shareholders who believed they were getting short-changed in a planned hostile takeover.

The company has since inked an agreement with blue-chip Japanese trading house Mitsui & Co on potential offtake from Cape Flattery following a similar deal with China’s Flat Glass Group and its strategic partnership with European-based Sibelco.

For Diatreme, the Japan tie-up should help unlock Mitsui’s global networks, ensuring its low-iron, high-purity product used in solar panels finds more markets abroad.

Diatreme CEO Neil McIntyre

Solar is powering renewables growth worldwide, with solar PV set to account for 80 per cent of new renewable capacity added globally through to 2030, according to the International Energy Agency. Japanese trading house Mitsubishi has been operating its own silica sand mine at Cape Flattery for decades.

Mr McIntyre said the designation would clear the approval path for the project allowing production to start as early as 2027.

“It removes some of the silos that you typically find in these projects,” he said. “There’s no question that it will enable the project to be developed faster. It’s a bit hard to quantify, but removing silos and creating direct engagement between agencies can only help. It will assist us as we progress through the final permitting and development phases and as we enter offtake negotiations.

“Creating a viable economic project that has clear community support and regional benefits whilst delivering strong returns for our shareholders has always been our goal and we are delighted by this government support.”

He said the acquisition of Metallica Minerals last September had helped boost the company’s reserves and credibility in the region.

“It’s really a strategic asset that has added value to both sets of shareholders,” he said. “And ultimately the key is always around delivering a project of scale and value.”

Mr McIntyre said the federal government recognised the regional development potential of the project as well as the importance of building stronger national supply chains in critical minerals such as silica. The mine will employ about 200 jobs in the construction phase and 120 in the production stage.

“This is an area with incredibly high unemployment and there is a strong Indigenous component to the project, so they’ll get direct benefit,” he said.

There was growing pressure, given rising global conflicts, for countries like Australia to build their own capacity in key areas including solar panel manufacturing. “There are now opportunities for more direct participation in renewables, encouragement of onshore manufacturing and de-risking of the geopolitical supply chains, which are increasingly becoming an issue worldwide,” Mr McIntyre said.

Originally published as Wayne Swan-chaired silica miner Diatreme wins major project status