Diatreme Resources says a new offtake agreement from its Galalar silica project highlights Asian demand for its premium‐quality silica product as solar energy goes from strength to strength.

The MOU with Jiangxi Kangjia New Material Technology Co covers supply of 250,000 tpa of photovoltaic-grade product from the Cape York project at mine start‐up.

It follows MOU’s signed with Fengsha Group and Wan Zhong Investment Group.

“We welcome this agreement, which should give our investors and other project partners increased confidence in the future of our key project,” chief executive officer Neil McIntyre.

“Galalar is now positioning itself as a leading supplier of premium‐quality silica product to Asia amid a global solar energy boom that shows no sign of slowing.

“We look forward to cementing these MOU’s into binding agreements that deliver mutually beneficial outcomes for all parties, together with valuable new jobs and investment for the Hope Vale/Cooktown region.”

Jiangxi Kangjia is a subsidiary of Konka Group, a major Chinese manufacturer of electronics products and the largest supplier of new nano microcrystalline materials and products in the world.

Diatreme said Jiangxi Kangjia had expressed a strong interest in establishing a strategic partnership to build an upstream and middle stream silica business chain to supply exploding demand in China for premium‐grade silica products.

The MOU provides a framework and road map for further cooperation, leading potentially to a legally binding offtake agreement.

News of the agreement follows Diatreme’s recent announcement of a 30 per cent increase in the size of the Galalar project’s silica resource to 61.9 million tonnes.

A draft EIS is underway, with Diatreme aiming to lodge the necessary environmental and mining lease approval submissions by the fourth quarter of 2021, targeting mine production in 2022.