Diatreme Resources Limited (ASX: DRX) has completed an Economic Impact Assessment (EIA) for its Northern Silica Project (NSP), revealing substantial economic benefits for Queensland and the local communities of Hope Vale and Cooktown. The EIA, prepared by KPMG, indicates that the NSP will generate up to 214 jobs during the construction phase and up to 128 direct operational roles over the 25-year mine life, with a 50% Indigenous employment target.
Material Actions and Disclosures
The EIA outlines the NSP’s economic impact on Queensland, estimating a net benefit of $412.6 million in present value terms and a benefit-cost ratio (BCR) of 4.1. The project is expected to lift the present value of Queensland’s real household consumption by $729 million over the operational phase. Diatreme will prioritize recruitment from within the Impact Assessment Area, expanding the search to Far North Queensland, Queensland, and nationally only where required.
The NSP will also contribute $305 million in Queensland state royalties and Native Title payments, and $2.1 billion in company income tax over the life of the mine. Diatreme has committed to a workforce training target that exceeds the 15% core requirement under the Queensland Government’s building and construction training requirements.
Forward Commitments
Diatreme has outlined plans to deliver a temporary 75-person off-site workforce accommodation facility in the Cooktown region and a 140-person on-site accommodation facility to meet peak workforce demand with a negligible impact on local housing supply. The company will also provide six houses in Cooktown for management staff.
Through its Workforce Management Plan, Diatreme aims to enhance economic benefits and manage adverse impacts, including a focus on local business participation and Indigenous employment. The company will continue to engage closely with Traditional Owners, local councils, and other stakeholders to advance the project towards approval and development.