Perpetual Resources Limited (ASX: PEC) hassigned a Memorandum of Understanding (MOU) with Guangdong Qinyin New Material Technology Co., Ltd (Qinyin), with indicative interest from Qinyin for the purchase of 400,000 tons per annum of high-grade silica sand from Perpetual’s Beharra Project in Western Australia.
Perpetual’s Executive Chairman, Julian Babarczy, said Qinyin is a supplier of finished products to the high-end glass industry in China, having developed long term relationships with many industry participants.
We are extremely pleased to be entering into discussions with Qinyin regarding potential offtake for Beharra, particularly as Qinyin represents such a well-positioned and active participant in the silica sand and glass raw material input market in China,” Mr Babarczy said.
“Demand from the photovoltaic/photoelectric glass industry in China is anticipated to grow significantly in coming years and our recent metallurgical test results show strong potential for Beharra to be a key participant in this exciting market”.
Negotiations around final product attributes, product pricing and payment terms will progress in coming months, with more definitive pricing discussions subject to the outcomes of the recently announced white-sand testing program, for which a drilling program is currently being finalised. Results of the white sand only bulk metallurgical testing programme that will underpin these product and pricing discussions is expected to be finalized in July 2021.
Guangdong Qinyin New Material Technology Co, Ltd is located in the Guangzhou Economic and Technological Development Zone.
Qinyin’s business includes the production of silver nitrate, silver sulfate, silver oxide, silver hydride and other silver salt chemicals, with sales of silver salt chemicals of around 360 tons per year, and annual sales revenue of approximately US$200 million.
Qinyin also produces various materials for the Chinese glass industry including silica sand, limestone, soda ash, sodium nitrate, and anhydrous sodium. Qinyin is a key and long-term supplier to the high-end glass industry in China.