VRX Silica Limited (ASX:VRX) is a silica sand exploration player, which has been listed on the Australian Securities Exchange since 24 February 2011. It is the only ASX-listed, pure-play silica sand firm, which possesses advanced development assets with more than 100 years of production life.
The Company owns several significant silica sand projects in Western Australia, including Arrowsmith North, Arrowsmith Central, Muchea and Boyatup silica sand projects. These high-value silica sand projects are situated in the Tier 1 mining region of Australia.
Located 270km towards north of Perth, the Arrowsmith projects comprise five granted exploration licences, coupled with two granted mining leases. Besides, the Muchea project is placed 50km to the north of Perth and comprises two granted as well as one application for exploration licences, along with one granted mining lease. The Boyatup project, located 100km towards the east of Esperance, includes two adjacent granted exploration licences.
VRX Silica is tapping lucrative opportunities in the silica sand market via its high-grade projects in Western Australia. The growing use of silica sand in different industries has resulted in a huge growth in its demand across the world, with supplies being running out.
Particularly, the demand for high-grade silica sand is increasing in the Asian region in the glass manufacturing industry and as a component in foundry casting. The developing countries in the Asia-Pacific region are anticipated to experience significant infrastructural spending in the coming years, driving glass demand. Furthermore, a considerable surge in demand for casting products for auto components, construction equipment and automobiles, is anticipated to stimulate silica sand demand. The burgeoning demand combined with global supply constraints of high-grade silica sand presents a promising outlook for VRX Silica.
In line with rising demand, the price of high-value silica sand is also expected to increase across Asia-Pacific countries in the future. VRX Silica is keen to cash in on the improving demand and potential price increases for silica sand.