Eye on hot silica sand market, Allup Silica charged up to advance WA assets

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Eye on hot silica sand market, Allup Silica charged up to advance WA assets

Allup Silica News
Image source: Allup Silica website


  • Silica sand is the second most traded commodity in the world.
  • The commodity is invaluable to a wide range of industries. However, reports suggest that there is an acute shortage of silica sand.
  • High-grade silica is used in standard and specialty glass, solar panels and modern-day technology including mobile phones, computers, and fibre optics.
  • Allup Silica, working to develop its prospective high-grade silica sand assets, with ambitions to become a major exporter of this crucial commodity.
  • The Company is planned to debut on the ASX this year.

Silica sand is the most traded commodity after water on the planet. The entire modern-day civilisation has been built around silica sand. Be it construction, infrastructure, solar panels, fibre optics, laptops, mobile screens, silica chips or foundries – all are built using silica sand. 

With silica sand having extensive applications, demand for the commodity is expected to heat up. However, the world is apparently running short of this vital resource.   

A report from the UN Environment indicates that the global demand for sand is nearly 40-50 billion tonnes per year. 

Due to extraction bans on silica sand in the countries that have historically met most of the world’s demand, meeting the soaring demand remains a challenge. Bans have come in place in light of environmental issues that are damaging the biodiversity and ecosystems due to unregulated and unethical mining practices.  

Since the commodity is crucial for civilisation and demand is on the rise, silica sand remains a hot commodity for the global export market. 

Read here: Allup Silica gears up for ASX listing, funds to fire up WA projects 

In the current upbeat scenario for silica sand, Allup Silica Limited is all geared up to advance its sand assets in Western Australia. The Australian mineral explorer holds a portfolio of four high-quality silica sand projects with eight granted exploration licences and four in the application phase.

 Allup Silica Projects Location

Project Location (Image source: Allup website) 

Why is Allup betting high on silica?

As per a UN Environment report, global trade of sand is estimated to grow 5.5% annually, in light of high demand, due to increased urbanisation and infrastructure development trends. Additional demand is expected from the hydrocarbon fracturing, foundry and glass industries. 

The Asia-Pacific region is expected to lead the charge in silica sand consumption through 2025. The glass industry in China is anticipated to register strong demand for high-quality silica sand to meet the manufacturing needs of glass bottles and container glasses. 

The foundry industry in India is showing robust demand, mainly driven by the production of sand moulds for metal casting. Other prominent market is Indonesia, which in recent times has been experiencing strong demand for the commodity in glass products manufacturing. 

Further bolstered by the various initiatives undertaken by several governmental and non-governmental organisations to promote the use of solar as the world transitions to green energy; the growing global silica sand market is aligned to meet the booming demand of glass-based photovoltaic modules and electric vehicles.

Annual Production of Allup Silica

Data source: Allup Silica

The oil production boom in the US and Canada is expected to drive the demand for silica sand used in hydraulic fracturing. Moreover, the construction industry in Europe is expected to show a modest gain in demand in the near to mid-term.  

The desert sand is not ideal for these purposes as they are shaped by the wind. They are too smooth and rounded to be used by the industry. Thus, the demand is high for the sand eroded by water. 

Allup is all set for listing on the ASX

Allup has planned float of its initial public offering (IPO) this year for 25 million shares @ AU$0.20.

The Company is expected to debut on the ASX, and the proceeds will be used to fast-track the exploration and development of its silica sand assets.

Several factors are expected to drive the global silica sand market. Some of them are strong industry demand, rebound in building construction activity, growing application in the high-tech glass, speciality solar panel, healthcare, and electronics space. With its high-grade project portfolio, Allup Silica continues to forge ahead in the booming silica sand market.


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