Diatreme Resources’ flagship Northern Silica Project (NSP) is set to deliver a AU$2.53 billion increase to Queensland’s gross state product over a 25-year mine life.
A new Economic Impact Assessment (EIA) conducted by KPMG reveals that the mine will contribute AU$305 million in state royalties and Native Title payments, alongside AU$2.1 billion in company income tax. Real household consumption across Queensland is projected to rise by AU$729 million.
The cost-benefit analysis demonstrates a net benefit to Queensland of AU$412.6 million in net present value terms, delivering a benefit-cost ratio of 4.1. The assessment forms part of the project’s environmental impact statement, currently under bilateral assessment by the Queensland and Australian governments.
Diatreme CEO Neil McIntyre said the findings reinforce the project’s capacity to generate lasting local and statewide value.
“This assessment confirms that the Northern Silica Project will be of enormous benefit for the Cape York region and the whole of Queensland,” he said.
He noted that focused training and local procurement will create genuine, long-term career and commercial opportunities for the Hope Vale and Cooktown communities.
The proposed open-cut silica sand mine will produce high-purity silica sand, an important material for the global solar energy supply chain.
Construction is scheduled to commence in late 2028, with Phase 1 operations targeted for mid-2030 at an initial production rate of 3 million tonnes per annum (Mtpa), expanding to 5 Mtpa by 2032. The product will be exported via the existing Port of Cape Flattery infrastructure.
“The EIA reinforces the NSP’s significance for Far North Queensland and the state, Diatreme Chair, Mr Brian Flannery said.
“It shows that a world-class silica sand project at Cape Flattery can deliver a substantial return to Queenslanders, while creating real economic opportunities for Traditional Owners and the local community over its 25-year life of mine.”
Declared a Coordinated Project in Queensland and a Major Project by the federal government, the Northern Silica Project positions Cape York as a key contributor to Australia’s critical minerals strategy while supporting regional economic development.