Solar energy is booming. According to estimates by BloombergNEF, 250 gigawatts of new capacity are expected to be installed this year alone. This corresponds to a quarter of the capacity installed worldwide so far. Demand will continue to rise. However, what could hamper the rapid growth of the solar industry in the future is the availability of critical raw materials, including – often forgotten because seemingly abundant – high-purity sand. Sand projects that meet all criteria in terms of logistics, environmental technology, and quality are rare. Now, the Australian sand start-up Allup Silica (ASX: APS; FRA: U77) has succeeded in consistently producing premium quality sand suitable for glass or solar panels at its Sparkler A Silica project in Western Australia.
Tests with an improved separation process yielded an average Fe2O3 content of 84 ppm across all test results, meeting the premium specification of 100 ppm for photovoltaic applications. After processing, SiO2 of 99.8% (highest value) was achieved. The average yield for all tested samples was over 96% SiO2. The test processed four samples taken from locations up to 2,500 meters apart on the project. The goal is to achieve the high specification for solar panels project-wide in the future by further optimizing the separation process. The Sparkler Project already has an in situ Inferred Resource of 70 million tons of sand with 96.84% SiO2. (see announcement from June 30, 2022)
The results show good separation (>95%) of SiO2 from the flotation tailings (product) and a reduction in impurity content in all cases, with a reduction in Fe2O3 content in the concentrate between 11 and 33% (Fe2O3). Organic environmentally friendly flotation reagents were used to achieve these results.
The chairman of Allup Silica, Andrew Haythorpe, said: “The results of the improvements we are making to the process circuit are very encouraging and show that we have the right projects and the high-purity quartz sands to get started. Because we meet the high-purity specifications for the production of PV cells, we can now supply potential customers with samples as part of the development of our Sparkler project.”
Further test work is underway to further refine the proposed process circuit method and achieve the ultimate goal of consistent iron content below 100 ppm across all of Allup Silica’s exploration projects.
The next work program will pursue several objectives: producing a more uniform product with low impurity (<100 ppm Fe2O3), seeking opportunities to reduce capital and operating costs (reduction of upstream classification), consistent quality assurance/quality control (QA/QC), and a methodology that may support an increase in the depth of minable sand, as this could potentially increase the estimated mineral reserves.
The aim of the test program was to process high-purity quartz sand with low impurities, particularly Fe2O3100 ppm (0.01%).
The company believes that high-quality quartz sand of this specification with low iron content will be in high demand for the production of high-quality, ultra-clear cover glass, particularly for the emerging photovoltaic industry (solar panels).
Conclusion: Solar panels require high-purity sand with a particularly low iron content. The lower the impurity, the more attractive the processing becomes for customers and the higher the potential selling price. Due to its geology, Australia has the potential to become the Saudi Arabia of sand. Sahara sand is suitable neither for use in construction nor for solar modules. Allup Silica has secured a strategic portfolio of sand projects across Australia. The Sparkler Project in Western Australia is just the beginning. Developing sand deposits is less risky compared to exploring gold or base metal deposits, as a resource can be quickly calculated. The investments to start sand production are relatively manageable at 15 to 20 million AUD, especially considering that such projects have a long lifespan. The purity of the product is crucial for profitability. There is no lack of demand. Even today, long before commercial production, Allup Silica regularly receives inquiries from interested parties in the industry. Allup raised 5 million AUD in its IPO in April this year. The four directors together hold more than 40 percent of the shares, correspondingly low is the current trading volume in the stock. However, investors paid 0.20 AUD at the IPO. Currently, the stock is trading at just under 0.10 AUD due to market conditions, valuing Allup at around 8 million AUD (including cash).
