How Will Macro Metals Unlock Derby East’s Export Sand Potential?
Macro Metals Limited and WA Limestone have completed the acquisition of the Derby East Construction Sands Project near Derby, WA, positioning themselves to tap into growing Southeast Asian sand markets. The project offers low-risk mining potential with strong logistics links to the Port of Derby.
- Joint acquisition of Derby East Construction Sands Project for A$125,000
- Macro Metals appointed as project manager and operator
- Project sand meets specifications for Singapore and Western Australia
- Strategic logistics partnership with NORDEN to explore export routes
- Environmental and native title assessments show no major impediments
Strategic Acquisition in Western Australia
Macro Metals Limited (ASX – M4M), together with its strategic partner WA Limestone Pty Ltd, has successfully acquired the Derby East Construction Sands Project, located just 24 kilometres east of Derby in Western Australia. The acquisition, completed for a modest consideration of A$125,000, grants the joint venture 100% legal and beneficial interest in two granted exploration licences. Macro Metals will take the lead as manager and operator through its wholly owned subsidiary, Macro Mining Services Pty Ltd.
High-Quality Sand with Export Potential
The Derby East Project hosts a substantial fluviatile sand deposit within Jurassic Wallal Sandstone, with drilling indicating an average sand thickness of 39 metres across an interpreted area of approximately 60 square kilometres. Geotechnical testing by consultants Golders confirms the sand’s strength and suitability for construction use. Importantly, the sand meets stringent specifications set by Singapore’s Building & Construction Authority as well as Western Australia’s Main Roads Specification 302 for earthworks, positioning it well for export markets.
Logistics and Market Access
One of the project’s key advantages is its proximity to the Port of Derby, a well-equipped facility with jetty and laydown areas capable of handling shipping operations. The sealed Gibb River Road provides reliable all-weather access to the site. Macro Metals’ strategic partner, Dampskibsselskabet NORDEN A/S, through its Singapore subsidiary NORDEN Shipping, holds a licence to import sand and fine aggregates into Singapore, a market that imported approximately 150 million tonnes of sand between 2020 and 2023. Together, Macro and NORDEN are actively studying supply chain logistics, including transhipping and ocean freight, to establish cost-competitive export routes to Singapore and other Southeast Asian markets.
Environmental and Community Considerations
Environmental surveys and native title consultations have been conducted with the Warrwa Mawadjala Gadjidgar and Warrwa People, the traditional owners of the land. Heritage surveys found no significant artefacts or sites of concern, and flora and vegetation assessments by Mattiske Consulting Pty Ltd identified no threatened or priority species within the project area. These findings suggest a relatively straightforward path for environmental approvals, supporting the project’s low-risk profile.
Next Steps and Outlook
Macro Metals is now focused on delineating a mineral resource through further exploration and advancing the necessary approvals to commence mining operations. The company anticipates a low-cost, low-risk mining operation above the water table using conventional equipment. With strong local infrastructure, strategic partnerships, and promising export market opportunities, the Derby East Project could become a significant new source of construction sand for both domestic and international customers.
Bottom Line?
As Macro Metals advances resource definition and export logistics, Derby East could reshape regional sand supply dynamics.
Questions in the middle?
- What timeline is Macro Metals targeting for resource delineation and production commencement?
- How will export logistics be structured to optimize cost competitiveness in Southeast Asian markets?
- What are the potential regulatory or environmental hurdles that could impact project development?