Metallica’s executive chairman Theo Psaros said a lot of the early demand has been caused by surge in renewables and silica is a key component of solar panels.

“We are pretty excited about it actually. With the boom that’s happening in solar panels – call it good luck or good management we are timing it pretty well,’’ Psaros said.

“If the world is serious about reducing emissions it’s going to need a hell of a lot of solar panels and Cape Flattery is regarded around the world as one of the best silica sand sources,’’ Psaros said.

“Judging by the number of inquiries looking at contracts to buy it even though we are two years away from putting it on a ship tells us something. It tells us that the market is really starting to move.”

The Cape Flattery project, which adjoins Mitsubishi’s existing mine, is in pre-feasibility but the expectation is for exports to start in 2024.

“We have been contacted with a lot of groups out of Asia,’’ Psaros said.

“We hope to be securing letters of intent and MOUs this calendar year but until we have our mining lease and environmental approvals, I can’t imagine offtakers are going to sign up bankable agreements.’’

If the mine goes through the environmental approval route it could have its mining lease and environmental conditions this year. If it has to have an environmental impact statement it could be an extra year.

“I think it’s such a good story and project I just don’t want to wait until 2023. 

Current cost for the project is estimated at $65 million but that would likely change in the upcoming pre-feasibility study. It expects to be producing 1.3 million tonnes compared with Mitsubishi’s neighbouring project’s 2.8mt.

The net present value is currently $253 million and internal rate of return is 38 per cent.

ilica is used in a wide variety of projects, including glass manufacturing, but it is also considered one of the “new economy” minerals It is also in ceramics, enamels and water purification.

Psaros said Metallica would apply to the Northern Australia Infrastructure Facility for debt funding.

“From an equity perspective I would love to raise it all in Australia but I would never assume that’s the case. We are already in discussion with investment banks and funds in the UK and Asia.

“A key advantage in the project, It is inside the port of Cape Flattery. There is an existing jetty. Mitsubishi owns all the ship-loading equipment and there is simply no capacity on that jetty.

“We are going to build a small jetty about 1km from where we start the mining. The beauty is the Sustainable Ports Act does not impact on our ability to build that.”

That Act was designed so no port facilities were built outside existing port areas because of the need to protect the GBR