A $100 million-plus project to supercharge Silica Resources Australia operations in Far North Queensland has received a $30 million boost from the QIC.
SRA is expected to achieve annual production of more than 360,000 tonnes in the next 12 months, ramping up to more than 750,000 tonnes within five years, through the expansion at its Mourilyan silica sands project, 30km south of Innisfail.
Silica Resources Australia managing director Rob Tindall said the company was building a low-iron processing plant on the freehold site where its existing shed was located.
“This low-iron processing plant will further remove impurities (iron) from the sand, allowing SRA to better meet customer demands with a value-added product and achieve a higher price for the more pure silica,” he said.
The resulting silica flour – an essential precursor for silicon – will be trucked 27km to the Port of Mourilyan and shipped to key trading partners and markets across Asia.
Mr Tindall said the level of production at the silica sand project remained minimal while SRA was still in the process of negotiating long-term off-take agreements and constructing the low-iron processing plant.
It had employed about 30 people over the last six months, but he said the company would be looking to employ a full-time equivalent workforce of more than 80 people by the fifth year of operations.
All up the expanded project is forecast to support 180 jobs over a 10-year period (direct and indirect FTI roles).
Mr Tindall said the project would look to develop its own common user infrastructure at the port as expansion works commenced.
“This investment and our existing mining lease has allowed us to start extracting from a silica deposit requiring only shallow, low-cost extraction methods,” Mr Tindall said.
“Silica flour is required to make the silicon used in solar panels and electronics, with other uses in construction sand, 3D printing and fibreglass.
“Demand driven by solar and clean energy technologies is anticipated to grow the global silica sand market to more than $36 billion by 2032, and this project allows North Queensland to secure a stake in that market while creating local employment and trade opportunities.
“We thank our investors, the Queensland Government and QIC for their ongoing support and look forward to what promises to be an exciting year ahead.”
State Finance, Trade, Employment and Training Minister Ros Bates said the QIC investment allowed the Cassowary Coast to leverage its proximity to key export markets and cement its position as a major player in global critical mineral supply chains.
“Our investment through QIC has delivered the plant, equipment, and land acquisitions for SRA to get on with creating jobs and mining the more than 50 million tonnes of silica sand on the project site,” she said.
“Under Labor, the Port of Mourilyan was underutilised. QIC’s investment in SRA will help deliver better outcomes and stronger returns, with better utilisation of a key asset and a significant local employer.”