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Highlights
- Final environmental approval for Arrowsmith North is now pending the decision of the WA Minister for Environment.
- Updated BFS highlights significant economics of the project with an ungeared NPV10 of AUD167 million and 221Mt Ore Reserve @ 99.5% SiO₂.
- Non-binding offtake term sheets signed with major Asian sand importers, pushing total annual interest to 640,000 tonnes.
- Production is expected to start within 8 to 12 months after approvals and financing are finalised.
VRX Silica Limited (ASX:VRX) is progressing development of its 100%-owned Arrowsmith North Silica Sand Project in Western Australia. The company is focused on securing final environmental approvals and completing key steps to transition the project into production, while attracting commercial interest from major sand importers.
Near-Term Development Opportunity
VRX highlights Arrowsmith North as a near-term, world-class silica sand development opportunity with a substantial ore reserve of 221 million tonnes at 99.5% SiO₂, enough for a potential 100-year production life. A grade-controlled proved ore reserve of 9.2 million tonnes has been defined for the initial six years of operation.
The updated Bankable Feasibility Study (BFS), released in March 2024, highlights ‘robust financial metrics’, with an ungeared NPV10 of AUD 167 million based on 25 years of mining. The company plans to produce four silica sand products targeting the global foundry and glass manufacturing markets.
Environmental Approval Process Nearing Completion
The regulatory approval process is in its final stages. In January 2025, Western Australia’s Environmental Protection Authority (EPA) published its assessment report, recommending the proposal’s approval to the Minister for Environment, subject to conditions. VRX accepted these conditions following consultation with the EPA.
The EPA report initiated a three-week public review period. One appeal was lodged, which has since been reviewed by the Office of the Appeals Convenor (OAC). The OAC completed its review and submitted its findings to the Minister, who will now determine whether to approve the Arrowsmith North Proposal.
Once environmental approval, final investment decision (FID), and financing are secured, VRX expects to commence production within 8–12 months.
Offtake Interest Secured
Alongside regulatory progress, VRX has signed non-binding offtake term sheets with sand importers in South Korea, Japan, and Taiwan.
These partners supply major foundry sand end users who have confirmed the superior quality of Arrowsmith North’s silica sand through extensive testing, according to the company.
These agreements add 440,000 tonnes per annum of offtake interest, increasing total committed interest to 640,000 tonnes per year (200k tonnes sought by South Korean companies- Dong A and Dong Nam).
As environmental approvals near completion and commercial interest builds across key Asian markets, VRX is actively exploring project financing options. The company has commenced discussions with potential debt financiers interested in supporting the project. Additionally, efforts are underway to convert non-binding offtake term sheets into binding agreements, which would further de-risk the project and pave the way for a final investment decision.
VRX shares were trading at AUD 0.067 per share at the time of writing on 13 June 2025.
