Diatreme Resources projects $2.5B Queensland silica boost

Diatreme Resources (ASX:DRX) announced an economic impact assessment showing its Northern Silica Project is projected to add $2.53 billion to Queensland’s real gross state product over a 25-year operational life.

The assessment comes following the company's October pre-feasibility study, which set project construction to begin in the fourth quarter of 2028 using shared wharf infrastructure at the Port of Cape Flattery.

"This assessment confirms that the Northern Silica Project will be of enormous benefit for the Cape York region and the whole of Queensland," said Diatreme Resources CEO Neil McIntyre.

The report detailed an estimated net benefit to Queensland of $412.6 million in net present value terms, alongside creation of up to 214 construction jobs and 128 operational roles with a 50% Indigenous employment target.

Following the announcement, the Diatreme Resources share price was unchanged at $0.014.

The company stated that the project aims to support the global solar energy boom by delivering critical mineral inputs for solar panel production.

Diatreme Resources previously expanded its silica joint venture with Sibelco through a $4.4 million funding injection and the sale of Cape Flattery Silica assets to consolidate regional holdings.