How Diatreme’s New Protocol with Gulaal People Could Shape Northern Silica Project

Diatreme Resources has formalised a negotiation framework with the Gulaal People, setting the stage for collaborative development of its Northern Silica Project while prioritising cultural heritage and community benefits.

  • Negotiation protocol signed with Gulaal People representatives
  • Framework aims to maximise economic and cultural benefits
  • Commitment to employment, training, and heritage protection
  • Northern Silica Project designated a Major Project by federal government
  • Ongoing consultations with other native title holders continue
An image related to Diatreme Resources Limited
Image source middle. ©

A Milestone in Indigenous Engagement

Diatreme Resources Limited (ASX, DRX) has taken a significant step forward in its Northern Silica Project (NSP) by signing a negotiation protocol with the Gulaal People, one of the key Traditional Owner groups affected by the project’s proposed southern access road. This protocol establishes a clear framework and guiding principles for future negotiations, aiming to secure agreements that are mutually beneficial and respectful of the Gulaal People’s cultural heritage.

The NSP, located in Far North Queensland, is a federally designated Major Project, a status that underscores its strategic importance to both Queensland and Australia’s critical minerals landscape. Diatreme’s engagement with the Gulaal People is a crucial component of the broader compensatory arrangements required with all affected Traditional Owners, reflecting a growing industry emphasis on meaningful Indigenous partnerships.

Balancing Development and Cultural Preservation

Under the protocol, Diatreme commits to fostering a positive, long-term relationship with the Gulaal People, focusing on maximising economic benefits such as local employment and training opportunities. The company also plans to develop a cultural heritage management plan tailored specifically to the Gulaal People’s requirements, ensuring protection of significant sites and traditions throughout the project lifecycle.

Neil McIntyre, Diatreme’s CEO, emphasised the company’s dedication to transparent and good-faith negotiations. He highlighted that the agreements sought will not only support the Gulaal People’s growth and development but also safeguard their rich cultural legacy for future generations. This approach aligns with Diatreme’s broader ESG commitments and its partnership with global materials group Sibelco, which has invested substantially in the silica sands projects.

Strategic Implications and Next Steps

While the negotiation protocol marks a positive development, the announcement leaves some questions unanswered regarding the timeline and specific terms of the final agreements. Diatreme is also continuing consultations with other native title holders, indicating a comprehensive strategy to secure social license and mitigate risks associated with Indigenous engagement.

The NSP’s designation as a Major Project and its proximity to the Cape Flattery Port position it as a key supplier of high-purity silica sands critical for industries such as solar photovoltaic manufacturing. Successfully navigating Indigenous negotiations will be pivotal in maintaining project momentum and investor confidence as Diatreme advances towards development.

Bottom Line?

Diatreme’s protocol with the Gulaal People sets a collaborative tone, but the path to final agreements will be closely watched by investors and stakeholders alike.

Questions in the middle?

  • What are the expected timelines for finalising agreements with the Gulaal People and other native title holders?
  • How might the negotiation outcomes affect the Northern Silica Project’s development schedule and costs?
  • What specific measures will Diatreme implement to balance economic benefits with cultural heritage preservation?