Diatreme Resources Enters Non-Binding Silica Sand Offtake Agreement with Mitsui

Emerging silica sands developer Diatreme Resources Limited has bolstered its efforts to advance its North Queensland silica sand projects by signing a non-binding Memorandum of Understanding (MOU) with Tokyo-based global trading and investment company, Mitsui & Co. The agreement sets the stage for future negotiations on potential offtake arrangements for silica sand products produced by Diatreme. It also expresses both parties' intent to explore and evaluate further business opportunities. Valid until November 1, 2025, the MOU includes an automatic annual renewal unless either party opts out.

This development follows Diatreme’s earlier non-binding offtake MOU with China’s Flat Glass Group Co., announced in July 2023, and its strategic partnership with Sibelco, a global leader in material solutions, established in 2022. Diatreme’s CEO, Neil McIntyre, emphasized the significance of Mitsui’s involvement, stating that the company's global market reach and commitment to sustainable growth represent a significant endorsement of Diatreme’s silica sand projects. McIntyre expressed optimism about collaborating with Mitsui on mutually beneficial agreements to ensure the sustainable development of these critical mineral resources.

“Mitsui & Co. is a renowned global organization with extensive resources and expertise, making its support a vital asset for our low iron, high purity silica sand projects, which are integral to powering the global solar energy boom,” McIntyre remarked.

Mitsui & Co., founded in 1947, operates a global network of 125 offices across 61 countries, employing over 5,400 people. Its 16 business units span various sectors, including minerals, energy, infrastructure, IT, and agriculture. Yuichi Fujii, General Manager of Mitsui’s Chlor-Alkali Division, praised the partnership with Diatreme, citing the company's strong commitment to community engagement, safety, and sustainability. Fujii highlighted the strategic location of Diatreme’s silica sand projects near Asia’s rapidly growing markets and their capacity to deliver low iron, high-purity silica sand as critical advantages for supporting the solar energy industry.

“Leveraging Mitsui’s global networks and expertise, we aim to maximize the value of this critical mineral, which is essential for global decarbonization,” Fujii stated.

The partnership comes as solar energy experiences unprecedented growth, with solar photovoltaic (PV) systems expected to account for 80% of new renewable energy capacity worldwide by 2030, according to the International Energy Agency. This surge in demand underscores the growing strategic importance of new silica sand projects like those in North Queensland. Recognized by the Queensland Government as critical mineral assets, these projects are well-positioned to meet the needs of the expanding solar PV industry and contribute to the global transition toward renewable energy.