VRX Silica Limited (ASX: VRX) is pleased to announce that the Environmental Protection Authority of Western Australia (EPA) has published its Assessment Report for the Arrowsmith North Silica Sand Project. The report, a significant milestone in the environmental approval process, recommends that the development proposal proceed, subject to conditions that VRX has accepted following consultations. This recommendation from the EPA is a testament to the project’s environmental process and brings VRX closer to the following stages of development.
Figure 1: Arrowsmith Projects
Review Period and Ministerial Consideration
The release of the Assessment Report triggers a three-week review period, providing time for further input and resolving any appeals. Once this review period concludes and an independent convenor addresses any appeals, the Minister for Environment will consider the proposal for approval under Part IV of the Environmental Protection Act. If approved, VRX will progress with development, providing long-term economic benefits, including job creation, to the region.
This follows the Company’s announcement on 18 November 2024, where the EPA published VRX’s Response to Submissions (RtS) for the project. The acceptance of the RtS and the subsequent publication of the Assessment Report further solidify the progress towards finalising environmental approvals for the project.
VRX Managing Director Bruce Maluish commented:
“The publication of the EPA’s Assessment Report for the Arrowsmith North Silica Sand Project marks the finalisation of the assessment process with the EPA. This is a significant milestone for the company, as the EPA has recommended that the Arrowsmith North development proposal be implemented, subject to conditions that VRX has accepted following consultations with the EPA.”
“This achievement represents the culmination of determined persistence by VRX and its consultants throughout the permitting process. We are now on the brink of launching a new industry in the Midwest region of Western Australia, which will create long-term employment and economic benefits for the state.”
“After the statutory three-week review period and resolution of any appeals, the proposal will be presented to the Minister for Environment for final approval.”
Conditions for Project Implementation
The EPA’s report outlines several conditions to ensure the project meets the highest environmental protection and operational responsibility standards. These conditions, including requirements for rehabilitation, mine closure procedures, environmental monitoring, and reporting of outcomes to relevant authorities, underscore VRX’s unwavering commitment to sustainable operations. VRX has accepted these conditions, developed in consultation with the EPA, and aligned them with the Company’s commitments in the RtS.
The conditions also ensure implementation of the best practices in rehabilitation and environmental management, reinforcing VRX’s commitment to sustainable operations.
Arrowsmith North Project Overview
The Arrowsmith North project, located 270 km north of Perth, is a significant venture for VRX. With a minimum 25-year mine life, it is expected to produce over 2 million tonnes of high-grade silica sand annually, making it one of Australia’s most crucial silica sand operations. The project’s products will be used in the foundry, container glass, and flat glass markets, primarily serving Asian customers.
Figure 2: VRX Silica Projects
Alongside Arrowsmith North, VRX is advancing its Muchea Silica Sand Project, located 50 km north of Perth. Muchea is an ultra-high-grade project that supplies silica sand for solar panels and high-tech glass applications. The Company’s Boyatup Silica Sand Project, located 100 km east of Esperance, will also supply silica sand for the glass industry, further expanding VRX’s footprint in the global market for silica sand.
Market Update and Investor Outlook
The global washed silica sand market was valued at US$6.12 billion in 2023 and is projected to grow at a CAGR of 7.9%, reaching a valuation of US$12.13 billion by 2032. The increasing demand for silica sand, driven by its essential use in glassmaking, solar panels, and high-tech glass applications, presents a significant opportunity for VRX.
With its advanced projects in Western Australia, including Arrowsmith North, Muchea, and Boyatup, VRX is well-positioned to capitalise on the growing global demand for high-quality silica sand. As the market for silica sand continues to expand, VRX’s strategic location and strong project pipeline give it a competitive edge, ensuring continued growth and value creation for investors.
VRX Silica Limited’s share price is currently $0.049, reflecting a 27.91% increase. The Company’s market capitalisation is $36.44 million, with 7.82 million shares recently traded. The Company currently has 744 million shares on issue, and over the past 52 weeks, the share price has fluctuated between $0.026 and $0.11.
About VRX Silica Limited
VRX Silica Limited is an Australian silica sand Company focused on developing its 100% owned silica sand projects in Western Australia. VRX’s projects, such as Arrowsmith North, Muchea, and Boyatup, position the Company as a major player in the growing global silica sand market. With strong permitting progress and substantial production capacity, VRX is poised for significant growth in the coming years, providing stakeholders with a positive outlook for the Company’s future.
