VRX Silica saves time and money with second-hand equipment strategy at Arrowsmith North
VRX Silica says the second-hand equipment will reduce the lead times as well as saving the company about $1 million in capital costs.
Silica sand explorer VRX Silica (ASX: VRX) has ordered the first two major items of capital equipment for its Arrowsmith North project in Western Australia.
The company has purchased a second-hand feed trommel and a Schenk “banana” vibrating screen for refurbishment at two separate fabrication workshops in regional Bunbury.
The strategy is believed to have reduced the lead time associated with purchasing brand new equipment from overseas suppliers and is set to deliver more than $1 million in cost savings.
Previous uses
The trommel was previously part of a mineral sands operation and will be refurbished at Hotweld Engineering.
It is a key piece of process equipment for Arrowsmith North, and comprises a rotating screening barrel mounted over a large sump on a structural steel-based frame.
Mined sand passes through the screen panels and is pumped to the processing plant.
The trommel is believed to be in good structural condition and is an ideal fit-for-purpose item for VRX.
The vibrating screen was previously used at a lithium processing plant and has undergone strip and assessment by the original equipment manufacturer before refurbishment commenced.
Non-destructive testing has revealed no structural issues and VRX said the extent of the refurbishment required is likely to be “far less than originally anticipated”.
Major milestone
VRX managing director Bruce Maluish said the capital equipment purchase was a major milestone for the project.
“Our strategy to purchase and refurbish high-quality second-hand major plant has pre-empted any lead time issues associated with ongoing global supply chain disruption and delivered considerable capital savings,” he said.
“We will continue to pursue other lead time and cost-saving opportunities to capitalise on our first-mover advantage in WA’s emerging silica sand sector at a time when there is fast-rising global demand for high-quality, responsibly-sourced silica sand volumes.”
Arrowsmith North is on track to gain final environmental approvals in December, with a six-month construction phase scheduled to commence in January.