Plaman Resources Ltd, which trades as Plaman Global, bought the mine in 2015 for more than $A5 million ($NZ5.4 million).
It has a potential mine life of 27 years and estimated resource of 31 million tonnes, which would be processed to supplementary stock feed and exported.
Unconfirmed funding estimates range from tens of millions of dollars’ investment to several hundred million, depending on the scale eventually achieved.
In an article by Animal Pharm, Plaman’s president of animal nutrition and health Rob Aukerman said the company had received $US20 million from multinational investment bank and financial services company Goldman Sachs.
That would be used to build Plaman’s workforce and undertake more animal feed trials.
Goldman would remain financial adviser to the project as it seeks further funding, he said.
The initial concept is for the 42ha mine at Foulden Hill to employ up to 40 staff. The raw diatomite would be trucked to a site near Bluff for processing, by up to 90 staff, then exported.Industry sources confirmed Plaman was still considering alternative options for transport, processing and export.
It is expected the project could take three to four years to get production fully under way.
The Foulden Hill project is considered the largest black diatomite quarry known.
Mr Aukerman said diatomaceous earth was used in a range of industries, including human health, and was approved for use in animal feed in many countries.
"Its a unique product that is very much rich in organic matter," Mr Aukerman said.
As an animal food supplement, diatomite improves gastro-intestinal health and may reduce the need for antibiotics.
To date, Plaman had completed successful feed supplement trials on poultry and pigs. Cattle were next on the trial agenda, and later, aquaculture and the pet sector.
Mr Aukerman said all the big animal health companies were trying to develop the "clean food movement", given antibiotics and pharmaceuticals had come in for a lot of scrutiny in recent years.
"It’s the right time for our product. It’s natural, it’s non-antibiotic and it has broad applications," he told Animal Pharm.
He noted there was not a complicated regulatory pathway ahead for diatomite as a supplement, given its existing approval in many countries.
Plaman’s ultimate majority shareholder is listed as tech giant Iris Corporation of Malaysia. Earlier this month, Plaman undertook to continue its relationship with the University of Otago’s geology department, allowing access during the year.
The department considers the Foulden Hill site one of the country’s "pre-eminent" fossil sites, and hopes a part of the site will be preserved in perpetuity.
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