Diatreme said its economic impact assessment for the Northern Silica Project was commissioned as part of the project’s Environmental Impact Statement, which is being assessed through the bilateral process between the Queensland and Australian governments. The assessment was completed by external consultants KPMG and draws on the project’s pre-feasibility study economics.
According to the cost-benefit analysis, the proposed project would deliver a $412.6 million net benefit to Queensland in present-value terms using a 7% discount rate, with a benefit-cost ratio of 4.1. KPMG’s modelling also projects a $729 million increase in the present value of Queensland real household consumption during the operating phase.
The EIA assesses a proposed 25-year mine life, with silica sand output of 3 million tonnes a year in the first two years and a potential expansion to 5 million tonnes a year from year three. Construction is scheduled to begin in the fourth quarter of 2028, subject to final approvals, while Phase 1 operations are planned for the second quarter of 2030.
Diatreme cautioned that the economic impacts depend on the project proceeding and operating as assumed. The company identified approvals, tenure and water licences, Traditional Owner agreements, port access, silica sand prices, offtake, financing and a final investment decision among the factors that could affect outcomes.
Source: Download DRX official ASX announcement, 2026-11-04.
Northern Silica Project location and development footprint map from Diatreme Resources’ company announcement dated 4 November 2026.