VRX Silica progresses silica sand projects as demand increases and supplies erode

Emerging silica sands producer, VRX Silica (ASX: VRX) has revealed a positive March quarter in progressing its four advanced projects in Western Australia.

Across its portfolio, VRX has more than 1 billion tonnes in resources grading 99.6-99.9% silica sand.

VRX plans to develop its Arrowsmith North silica sand project first followed by Muchea and Arrowsmith Central, with mining leases in place for all three, along with various miscellaneous licences.

The company describes itself as owning the “most developed” silica sands projects of any ASX-listed company.

“The scale of the projects provides for a long-term opportunity for silica sand export and potential for glass manufacturing and downstream industries in Western Australia,” VRX stated.

Arrowsmith North and Arrowsmith Central

Alone, Arrowsmith North has 223Mt in ore reserves grading 99.7% silica sand.

During the March quarter, VRX worked on a revised capital estimate for a tailored 2Mt per annum processing plant with a unique patented process circuit, which have been designed following extensive metallurgical testing.

Evaluation of available water for the proposed operation confirmed it is acceptable for use in the process plant.

In line with other workstreams, VRX has progressed its environmental permitting requirements for the project.

A final report is due for submission to the state’s Environmental Protection Authority in December.

The quarter also saw VRX advancing environmental assessments and providing requisite information to the EPA for Arrowsmith Central.

Muchea

Once mining has kicked-off at Arrowsmith North, VRX will begin development activities at Muchea.

VRX noted Muchea has access to established infrastructure including grid power and gas pipelines. The project is adjacent to the brand Highway and the underutilised railway, which connects to the Kwinana Port.

The company expects to source water for the operation from the Yaragadee aquifer.

“The company has had many overseas enquiries for Muchea silica sand and believes that the consistent production of such high-grade silica sand with a low iron content will be in high demand as raw material for the manufacture of premium ultra-clear cover glass production, particularly for the burgeoning solar panel manufacturing industry,” VRX stated.

This interest continued in the March quarter.

Silica sand market

Next to air and water, silica sand is the most-used commodity worldwide.

It is the main ingredient in glass making, including specialty solar panel and high-tech glass.

According to VRX, demand for the material in glass manufacturing is increasing at 5-6% per year – equating to about 8-10Mtpa.

Almost 50% of the world’s glass is made in Asia.

Silica sand is also deemed critical in foundry and casting and is the main ingredient in concrete.

“Silica sand is a finite resource that is rapidly being exhausted and the Asia Pacific region is currently experiencing increasing demand at a time of global supply shortfall.”