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Diatreme (ASX:DRX) has confirmed its execution of a non-binding MOU with Mitsui towards possible silica supply for solar manufacturing.
The Japanese multinational trading house is interested in Diatreme’s QLD silica sands projects, given that silica is a feedstock material needed in the manufacturing of solar panels.
Unrelated fun fact: So is silver paste, which is what it sounds like.
To that end – and understanding this MOU is non-binding, which a cynic might say makes it worthless – Diatreme finds itself poised to possibly seize on ex-American renewables momentum, even through the looming Trump years.
(To be fair to cynics, the MOU just says Diatreme and Mitsui will continue to talk about potential synergies into November 2025.)
Diatreme noted on Wednesday the MOU comes “amid growing demand for low iron, high purity silica to power [the] solar energy boom.”
Mitsui, for its part, is interested in Diatreme for one reason – relatively close access to Asian markets in the rightmost Top End of Australia.
“Diatreme’s silica sand projects are attractively located in proximity to fast-growing Asian markets, and its ability to deliver a low iron, high purity product makes it well placed to benefit from the continuing solar energy boom,” Mitsui’s Chlor-Alkali Division GM Yuichi Fujii said.
“By utilising our global networks and industry know-how, we will help generate maximum value from this valuable critical mineral key to global decarbonisation.”
The ‘solar boom’ being referred to, here, Diatreme clarified on Wednesday, is projections that 80% of new renewables capacity into 2030 will be solar.
“We look forward to engaging closely with Mitsui on future offtake and business opportunities with a goal of securing mutually beneficial agreements, ensuring the sustainable development of our silica sand projects for the benefit of all stakeholders,” Diatreme CEO Neil McIntyre said.
DRX last traded at 2.4cps.
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