From The Australian

Queensland’s new Bowen Basin being built on silica sand

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Metallica Minerals has confirmed potential for a long-life, low operating cost silica sand project at Cape Flattery.

• ByGLEN NORRIS

  SENIOR BUSINESS REPORTER
• 1:09PM DECEMBER 26, 2023
• 2COMMENTS

Metallica Minerals has received state government backing for its huge silica sands development in North Queensland, underscoring demand for the high-quality glass needed in solar panels, computer screens, televisions and electric vehicles.

Brisbane-based Metallica’s planned mine at Cape Flattery has been declared a co-ordinated project by the Office of the Coordinator-General, a designation allowing streamlined environmental approvals and other processes.

Cape Flattery in Far North Queensland has been called the ‘Bowen Basin’ of silica sand, with Metallica developing a huge silica sand deposit 220 km north of Cairns.

Diatreme, another silica sand prospect in the regionchaired by former treasurer Wayne Swan, earlier this year announced its project could potentially be worth $1.4 billion over a 25-year life span.

Prime Minister Anthony Albanese has called for the development of solar panel manufacturing in Australia, given the growing importance of the strategic resource.

Metallica chief executive Theo Psaros, a former boss of Queensland Rugby Union, said he likens the region to the Bowen Basin in term of its export potential. The Bowen Basin contains the largest coal reserve in Australia, extends over approximately 60,000 square kilometres of Central Queensland and is a major contributor to the economy.

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“The silica sand resource is very large with proximity to good infrastructure,” said Mr Psaros. “The deposits in there are well known around the world for being one of the most pure silica sand products available.”

Metallica, which is adjacent to the world’s largest silica mine run by Japan’s Mitsubishi, is expected to be up and running by 2027.

Cape Flattery in Far North Queensland.

Mr Psaros says the global silica sand market is expected to grow from US$8 billion in 2019 to US$20 billion next year. “We are located next to an existing world class silica sand project and with access to key global markets our project is well positioned to capitalise on the growing green economy,” said Mr Psaros.

Mr Psaros says Metallica is looking forward to working with the Queensland government and ultimately key Commonwealth agencies to get the project over the line.

“We are in the right place and right time as the solar panel industry starts to boom,” he said. “Both the Commonwealth and Queensland have published critical mineral strategies and we’re in their sights. Our challenges are getting the approvals through.

“This declaration by the state government signifies strong support from the Queensland government for our project and working directly with the Office of the Coordinator-General will add value to the regional government, Queensland government and Commonwealth agencies engaged throughout our approvals process.”

Mr Psaros said he is not just content to mine silica, arguing governments — state and federal — should be encouraging the manufacturing of silica glass in North Queensland, perhaps through tax breaks.

Prime Minister Albanese earlier this year called for the development of solar panel manufacturing in Australia, given its strategic importance.

“We’ve got the commodity, and we’ve got the skill set to deliver manufacturing,” Mr Psaros said.

“Sure, our labour and our energy isn’t cheap but we will get nothing out of this industry unless we think differently. So what is so wrong with a tax free window?”

Diatreme chief executive Neil McIntyre said his company’s nearby mine had the potential to generate substantial employment opportunities, estimated at approximately 100 jobs, for the Hope Vale and Cooktown region together with investment and other economic benefits.

The company has a strategic partnership with global material solutions provider Sibelco, which is set to speed the development of the resource for the booming solar PV industry.

GLEN NORRIS

SENIOR BUSINESS REPORTER