The Wayne Swan-led Diatreme has signed a memorandum of understanding with Flat for a potential offtake from the company’s north Queensland silica project.

The MoU is non-binding, but would allow for the transfer of sensitive information between the two companies.

“The MoU also includes Flat examining the potential to site onshore PV glass manufacturing in Queensland, amid surging demand from the solar power industry,” Diatreme said.

Chief executive Neil Mcintyre said the company was encouraged that one of the world’s leading PV glass manufacturers was negotiating over silica supply.

“This is a strong vote of confidence in the northern silica project and its capacity to meet Flat’s highly exacting offtake requirements,” he said.

“We look forward to progressing this agreement, cementing our project’s status as a major and sustainable supplier and delivering long-term jobs and other economic benefits to the Cooktown and Hope Vale region.”

Diatreme is planning a full feasibility study and was seeking permitting and approvals to move towards an investment decision.