Diatreme Resources has announced a new MOU for offtake from its Galalar silica project in Far North Queensland.

The agreement with Chinese company Wan Zhong Investment Group is for the potential supply of up to 500,000 tonnes per annum of photovoltaic-grade silica sand.

It follows the signing of an MOU in July with the Fengsha Group, also for the potential supply of up to 500,000 tonnes per annum.



Both may be scaled up to reflect targeted outputs from the project, about 200km north of Cairns.

The Galalar project is adjancent to the world’s largest silica sand mining operation, Mitsubishi Corporation’s Cape Flattery mine, and would potentially serve the fast-growing solar panel market.

Diatreme chief executive officer Neil McIntyre said the second such offtake MOU for Galalar highlighted the strength of international demand for silica sand and the project’s potential to become a new and secure source for Asian markets.

“Galalar is fast becoming an extremely desirable project as demonstrated by the recent scoping study and this latest MOU is another indication of the strength of demand for its premium-grade silica product,” he said.

“The Chinese market consumes around a third of the world’s industrial silica and we are extremely encouraged by the interest shown by Wan Zhong, Fengsha and other groups in obtaining offtake from Galalar.

“We look forward to negotiating potential binding agreements that give mutually beneficial outcomes for all parties, including our project partner, Hopevale Congress.”