By Anthony Fensom
Australia’s growing silica sand industry is expanding output amid a solar energy boom that shows no sign of slowing. And with the product increasingly considered a critical or strategic mineral, governments are showing increasing interest, too.
‘Low-iron, high-purity silica sand is an essential ingredient in every solar panel; and with the solar boom continuing, demand for our product is extremely robust,’ says Neil McIntyre, Chief Executive of Queensland silica sands miner Diatreme Resources.
Diatreme is advancing its flagship Northern Silica Project (NSP) near Cooktown, Queensland, with the company eyeing near-term production of its valuable low-iron, high-purity product.
The company has grown its total silica sand resource base to more than 530 million tonnes, offering the opportunity for a ‘multigenerational critical minerals project for Queensland’.
Diatreme has also submitted the NSP’s draft environmental impact statement to the Queensland authorities for review, the culmination of ‘an extensive process of environmental, social and economic assessments’.
The next phase will involve public consultation, with the company highlighting the project’s ability to create more than 120 new jobs for the Hope Vale and Cooktown regions, together with net regional benefits of $414 million over its operational life.
Diatreme is also progressing its Cyclone mineral sands project in Western Australia, with metallurgical test work showing substantial improvements in projected product yields.
In May, McIntyre visited Tokyo and Washington as part of Australian critical minerals delegations aiming to engage with potential overseas investors and project partners, as well as governments.
Both Japan and the United States have signed critical minerals agreements with Australia, with Diatreme already having a non-binding memorandum of understanding with Japanese trading house Mitsui & Co. over its silica sand projects.
US-led initiatives like Pax Silica have highlighted the value of silicon supply chains for semiconductors and artificial intelligence (AI) infrastructure, and high-purity silica is seen as strategically important.
‘Critical minerals are in the global spotlight; and whether it’s Tokyo or Washington, Australia is seen as an attractive partner given our strong resource base, regulatory framework, environmental credentials, and mining know-how,’ McIntyre says.
Diatreme now plans to announce a pre-feasibility study for its NSP, targeting production of 121 million tonnes a year of high-purity silica sand over 25 years. The company is also working to unlock a port solution, eyeing the nearby publicly owned Cape Flattery Port with its ‘significant spare capacity’ and the benefits of shared infrastructure.
The market for Diatreme’s product is seen remaining strong, according to the latest forecasts.
Solar PV was the largest single contributor to growth in global energy supply in 2025, accounting for more than 25 per cent of the increase and ‘the first time on record that a modern renewable source has led global primary energy supply growth’, the International Energy Agency (IEA) reports in its ‘Global Energy Review 2026’.
The IEA expects that solar PV will account for around 80 per cent of the global increase in renewable power capacity through to 2030, driven by low costs and faster permitting timeframes.
‘With 70 per cent of every solar panel comprised of glass made from high-purity, low-iron silica, Diatreme’s key product has a bright future, and we are proud to be playing a role in the world’s clean energy transition,’ McIntyre says.
Queensland is already a leading exporter of silica sands, with the Mitsubishi-owned Cape Flattery Silica Mines currently exporting around three million tonnes per year.
In October 2025, the Queensland Government announced its $30-million investment – facilitated through the Queensland Investment Corporation – in Silica Resources Australia’s (SRA’s) Mourilyan silica sands project. The project is expected to ramp up annual production to more than 360,000 tonnes in 2026 and more than 750,000 tonnes within five years, creating an estimated 180 new jobs.
‘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,’ SRA Managing Director Rob Tindall said in a statement.
Also in Queensland, Perth-based Australian Silica Quartz is continuing exploration for metallurgical-grade silicon quartz near Townsville, with its projects in Queensland and Western Australia seen having the potential to contain silica products ‘ranging from metallurgical grade to high-purity silica’.
Across the border, the Geological Survey of NSW has flagged the state’s potential to ‘become a hotbed for high-purity silica exploration’, including in the Broken Hill, New England and Lachlan regions.
Under the state’s NSW Critical Minerals and High-Tech Metals Strategy 2024–35, high-purity silica is seen as ‘a key resource with potential to attract exploration and establish downstream industries, strengthening the state’s role in global mineral supply chains’.
Over in Western Australia, VRX Silica announced an updated bankable feasibility study (BFS) in May 2026 for its Arrowsmith North Silica Sand Project, located 270 kilometres north of Perth, leading the development of the company’s five silica sand projects.
The study estimated an ‘ungeared net present value’ of $179.2 million, based on a 25-year mine life with a resource estimated exceeding 100 years.
VRX CEO Tony Swiericzuk says the updated BFS ‘confirms that VRX’s Arrowsmith North Silica Sand Project retains strong economic fundamentals and is positioned to supply up to four silica sand products into a growing Asian market’.
‘Globally, silica sand remains in a growth phase, with both volume and value having increased worldwide. Increasing use of flat glass in PV modules, solar panels and e-glass, owing to rising need for clean energy, is expected to be a key factor driving market growth,’ VRX says.
Perth-based Perpetual Resources is also progressing its Beharra silica sand project in Western Australia, announcing in May 2026 ‘significant impurity reduction’ following testing on silica sand from its project, meeting specifications for ‘multiple premium glass markets’ and ‘within striking distance’ of specifications required for solar PV.
‘The world needs our product; and with tightening supply sources, there’s no doubt that Australian silica sand producers are set to benefit from a long-term demand upswing as the world continues to electrify,’ McIntyre says.
