European materials solutions company Sibelco will invest circa $49 million in Australian mineral and silica mines developer Diatreme via shares and project investment.
The two businesses will partner to progress the development of Diatreme’s emerging Galalar Silica Project and Northern Resource Project in far north Queensland.
The projects will be supported by investment from Sibelco of $35 million, split into two tranches of $11 million and $24 million respectively.
Sibelco has also become a major shareholder in Diatreme through the purchase of ordinary shares totalling $13.97, representative of a 15 per cent shareholding in Diatreme.
This brings Sibelco’s total investment in Diatreme to circa $49 million.
“Diatreme’s silica sand projects are strategically located to service fast-growing Asian markets,” Sibelco chief executive Hilmar Rode said.
“This partnership therefore extends our access to high quality silica sand reserves in this region, while remaining in line with our strong sustainability ambitions.”
According to Rode, “Sibelco will benefit from Diatreme’s strong local presence and relationships while sharing our expertise in the silica sand business, based on our 150 years of international experience.”
The partnership is also in line with Diatreme’s development ambitions.
“Sibelco’s investment into Diatreme at both the corporate and silica projects portfolio level is a vote of confidence in our Company, our strategy to date and the inherent quality of our high-grade, world class silica sand projects,” Diatreme chief executive Neil McIntyre said.
“Sibelco is the perfect partner for us to unlock the value of our world-class silica sand deposits,” he added.
Diatreme believes that Sibelco’s technical, processing and marketing expertise will enhance the development of its projects.
“Having grown our silica sand resource base to around 200 million tonnes and with room for further expansion, we are now perfectly placed with Sibelco’s support to secure a leading position in the fast-growing global high quality silica sands industry and assist in powering Asia’s solar energy revolution,” McIntyre said.