Sibelco complete second-tranche investment in Diatreme
A$24 million investment in Australian joint-venture silica sand company completed ahead of schedule
AS announced in 2022, Sibelco committed to invest A$49 million (€32 million) in Diatreme Resources Ltd, an emerging Australian producer of mineral and silica sands based in Brisbane, Australia.
Today [17 October 2023], Sibelco have completed ahead of schedule their second-tranche investment of A$24 million into the joint-venture company with Diatreme, Cape Silica Holdings Pty Ltd, and increased their joint-venture interest by 16.8% to 26.8%. This investment builds upon the first-tranche investment of A$11 million which was completed on 2 Dec 2022.
Sibelco’s second-tranche investment was priced at a ‘look through’ value of A$160 million for the Far North Queensland silica sand projects, with Diatreme currently advancing their flagship Northern Silica Project (NSP) towards development.
Ian Sedgman, Sibelco’s chief strategy and business development officer, commented: ‘Since our strategic partnership was reached last year, we have been pleased with the joint venture’s progress in advancing the development of these world-class high-purity silica sand projects.
‘Our early payment highlights our support for the joint venture and confidence that it will deliver this key resource, which the world’s speciality glass market desperately needs at a time of rapid solar PV growth and accelerating global decarbonization.
