Diatreme Resources’ proposed silica mine near Hope Vale has been boosted to the tune of $24 million, with global mineral giant Sibelco completing its second tranche investment in advance.
Sibelco, a joint venture partner in Cape Silica Holdings, now holds 26.8 per cent interest in the company, with the second funding tranche bringing the total investment to $35 million.
Diatreme CEO Neil McIntyre said Sibelco’s continued investment showed confidence in the joint venture.
“This investment shows Sibelco’s confidence in Diatreme’s management and ability to deliver,” Mr McIntyre said.
“We can now move forward with even greater conviction, backed by an extraordinarily long funding runway, through the important next steps of permitting and regulatory approvals to eventual mining of this key critical mineral.”
Announced in June last year, the strategic partnership between Diatreme and Sibelco includes plans for joint product marketing, onshore silica processing opportunities and assistance in accessing project finance.
Sibelco chief strategy and business development officer Ian Sedgman said his company was pleased with the joint venture’s progress.
“Our early payment highlights our support for the joint venture and confidence that it will deliver this key resource, which the world’s specialty glass market desperately needs at a time of rapid solar PV growth and accelerating global decarbonisation.”
If approved, the proposed $1 billion silica mine in the dunes near Hope Vale could produce 5 mega tonnes of silica annually for 25 years.