Metallica’s silica project to generate $2 billion
The Cape Flattery silica project would deliver revenue of more than $2 billion over its life, according to a pre-feasibility study for Metallica Minerals.
Metallica's Theo Psaros said revenue from the project would top $3 billion (Photo: supplied)
The study showed a net present value of $290 million and an internal rate of return of 34.9 per cent, indicating a quick payback.
The capital cost was estimated at $79 million and average annual revenue was estimated at $85 million. The life of the project was 25 years.
Executive chairman Theo Psaros said Metallica would move to a definitive feasibility with confidence. He said the definitive feasibility would have work to do on the transhipping and final metallurgical processing.
He said the world’s markets were transitioning to lower carbon energy projects so there was a booming demand for high quality sands.
“Cape Flattery is an outstanding opportunity to develop an efficient, environmentally responsible and financially successful silica sand export operation for the benefit of all stakeholders,” he said.
