VRX Silica Signs Binding Offtake Contracts for Arrowsmith North Project

VRX Silica (ASX: VRX) has finalised four binding offtake agreements for the supply of high-grade silica sand from its Arrowsmith North project in Western Australia, marking a major commercial milestone ahead of first production.

The agreements cover an aggregate 410,000 tonnes per annum of silica sand to customers in South Korea, Taiwan, and the Philippines—representing almost half of the project’s proposed start-up capacity.

Managing director Bruce Maluish said the deals validate VRX’s strategy to position Arrowsmith North as a long-term, Tier 1 source of silica sand for Asia’s foundry and glassmaking sectors.

Contracts Cement Market Entry

The four-year agreements include two customers in South Korea supplying the automobile foundry industry, a Taiwanese group active across foundry, glass and water filtration markets, and a glass manufacturer in the Philippines.

Pricing is fixed for the first two years and sits within the assumptions of VRX’s bankable feasibility study, providing a base level of revenue certainty for the company and its lenders.

Each contract is subject to customary project commencement conditions including financing, final permitting, port access arrangements, and an initial trial shipment.

270 kilometres north of Perth, the Arrowsmith North project hosts a proved and probable ore reserve of 221 million tonnes at 99.5% silicon dioxide.

VRX plans to ramp up production from 1Mt per annum to more than 2Mtpa, underpinned by decades of operating life.

Building Asia-Pacific Supply Chains

Mr Maluish said VRX continues to receive strong inbound interest from prospective customers across the region.

“These contracts further vindicate VRX’s strategy to ensure production of a unique Australian highly sought-after product and secure the right customers for our silica sand products for what we expect to be long-term relationships.”

VRX expects to reach a final investment decision in the first half of 2026 and commence construction soon after, targeting first production for later that year.

Mr Maluish said the binding contracts, together with strong financing engagement, provide a clear pathway to development.

“With key project approvals in place, our marketing team is actively engaging with interested parties involved in the foundry sand and glass-making industries and responding to a number of new enquiries as our high-quality silica sand products and surety of supply become recognised in the marketplace.”