Australia Accords Major Project Status For Silica Project

Australia’s Ministry for Industry and Innovation and the Ministry for Science have awarded Major Project Status to the Northern Silica Project (NSP). Advancing this project will strengthen the domestic supply chains for the manufacturing of solar panels, silicon wafers and high-end electronics. 

Located North of Cairns in Queensland, NSP is a flagship project of Diatreme Resources Limited, an emerging producer of mineral and silica sands based in Brisbane. It says this location has one of the world’s largest deposits of high-purity silica sands with a silicon dioxide purity exceeding 99% and a low iron content of less than 120 ppm, which, as Diatreme points out, is a critical criterion for solar panel glass manufacturers.  

Through this project, Diatreme targets to produce 3 to 5 million tonnes per annum (Mtpa) of high-grade, low-iron silica sand over 25 years (121 MT over 25 years). The initial target is to produce 3 Mtpa of silica sand, expanding the annual production to 5 Mtpa after 2 years of operation. Diatreme expects to launch construction on site in 2025.   

The close proximity to existing marine infrastructure makes it ‘favorably positioned’ for Asian markets, says the company, as it sees the NSP becoming a leading supplier of high-grade silica products for the global solar PV and specialty glass industries.

This high-purity silica sand mining project, worth an investment of up to AUD 534.8 million ($349.4 million), has already secured the Coordinated Project Status by the Office of the Coordinator-General in Queensland.

Apart from Diatreme, some other companies are also exploring capital and energy-intensive silica projects in the country. Back in 2021, Solquartz announced plans for a 9,100-ton silica fume project in Queensland, along with a 52,000-ton silicon metal fab for solar PV and battery industries. VRX Silica is also developing 3 high-purity Western Australian silica sand projects with the potential to source this resource for over 100 years (see Green Hydrogen For Possible Solar Glass Production In Australia).  

Additionally, the Australian Federal Government has also renewed the Major Project Status for SunCable’s Australia-Asia Power Link (AAPowerLink) Project in Darwin. The project aims to make nearly 6 GW of 24/7 solar power available for both domestic and international markets with the help of battery storage (see Asia Pacific Solar PV News Snippets: X-Elio To Add 148 MW BESS For Aussie PV Farm & More).   

Tum Ayers, Australian Minister for Industry and Innovation and Minister for Science, explained that the Major Project Status to these projects recognizes the strategic and economic significance of a project to a Future Made in Australia and provides companies with extra support to navigate the regulatory system.

Australia has committed AUS 22.7 billion in its 2024-25 budget to support green energy transition and economic resilience projects under the Future Made in Australia program, which aims to encourage and facilitate private sector investment.