Carbine Resources granted long-term mining lease over Muchea West silica sand project
Carbine Resources (ASX: CRB) has hit an important milestone with the issuance of a mining lease for its Muchea West silica sand project north of Perth in Western Australia.
Granted by the WA Department of Energy, Mines, Industry Regulation and Safety (DEMIRS), Carbine has been issued mining lease M70/1433 for an initial term of 21 years.
The lease covers a section of the current Muchea West silica sand project containing a resource of 110 million tonnes at 99.65% silicon dioxide, with the remaining resources located on granted exploration licence E70/4905.
Silica sand project
Muchea West – considered a significant Australian silica sand project due to its high silica grade and the low levels of impurities – has seen its development delayed by numerous access issues.
Carbine’s board said that, while receipt of the mining lease is significant for the company, it is just another step towards bringing Muchea West to commercialisation.
“The commencement of mining activities at the project still remains subject to statutory approvals and consents including environmental approvals and consents relating to the nearby Muchea Air Weapons Range,” the company noted.
“The company has been working closely with key project stakeholders, including DEMIRS and the Department of Defence, for a considerable period to progress towards securing a mining lease and will look to build on these relationships through the next approvals phase.”
Easily accessible
Located approximately 40 kilometres north-north-east of Perth, the Muchea West project has market access to the Kwinana bulk terminal via both the nearby Tonkin Highway and the Moora-Kwinana railway.
The company reported earlier this month that it had signed access agreements with three landowners within one section of exploration licence E70/5823.
The signing will allow on-ground exploration activities to commence at the company’s Down South silica sand project.
High-growth market
Fortune Business Insights has valued the global silica sand market at approximately $18.7 billion in 2023 and $20.2b in 2024.
The research firm has projected this will grow at an annual compound rate of 7.7% to around $35b by 2032.
Asia-Pacific is the dominant region in the silica sand market with a 29.28% market share in 2023.