Diatreme Resources (ASX:DRX) expects its Northern Silica Project (NSP) to lift Queensland’s gross state product by $2.53 billion, with construction slated to start in late 2028.
The economic impact assessment forms part of the project’s environmental impact statement, currently under bilateral assessment by the Queensland and Australian governments.
It builds on the Prefeasibility Study released on 15 October, which outlined a pre-tax net present value of $2.4 billion and a pre-tax internal rate of return of 46%.
An independent assessment by KPMG estimates a net benefit to Queensland of $412.6 million in present value terms, with a benefit-cost ratio of 4.1.
Life-of-mine contributions include $305 million in state royalties and Native Title payments, alongside $2.1 billion in corporate income tax.
CEO Neil McIntyre says the NSP will employ “up to 214 people during construction and 128 in operations”.
“With our 50% Indigenous employment target and focus on local training and procurement, we can create genuine long-term career and business opportunities in Hope Vale and Cooktown communities,” McIntyre says.
Subject to final approvals, phase one commercial operations are planned for the June quarter of 2030, with a potential expansion to 5 million tonnes a year from 2032.
Diatreme Resources is an emerging producer of mineral and silica sands with projects in Far North Queensland and Western Australia.
Write to Paula Fabe at Mining.com.au
Main image: Diatreme Resources
