VRX Silica Limited (ASX: VRX) (‘VRX Silica’ or ‘the Company’) has reached a significant milestone in its efforts to establish a world-class silica sand operation at Arrowsmith North, Western Australia. The company announced that the Environmental Protection Authority of Western Australia (EPA) has formally accepted its Response to Submissions (RtS), a critical step in the project’s environmental approval process.
This acceptance marks a major advancement, signaling that the project is moving into its final approval stages. The RtS document addresses public and stakeholder feedback, reflecting VRX Silica’s dedication to sustainable and transparent resource development. As the company targets high-grade silica sand production, it continues to position itself as a key player in the global silica sand market.
The comprehensive RtS document is now publicly accessible on the EPA’s website, allowing stakeholders to review the technical and environmental details.
VRX Silica Managing Director Mr Bruce Maluish provided critical insight into this milestone, stating:
“The Response to Submissions is a vital component of the EPA assessment process and now, having been accepted and published, is a confirmation that the EPA will be completing its assessment of the Arrowsmith North Silica Sand Project. This work culminates an extensive series of studies undertaken for the Project.”
He further emphasised the significance of this stage, noting:
“Acceptance of the RtS is a significant milestone in the lengthy approval process for Arrowsmith North. We are pleased that this process is now entering its final stages. We thank shareholders for their continued patience as we work through this.”
Detailed Approval Process Trajectory and Interdepartmental Regulatory Collaboration
Since the Public Environmental Review (PER) began in July 2023, VRX Silica has navigated a thorough environmental review process. Following submissions in September 2023, the company integrated feedback from regulatory bodies into its draft and final responses. A pivotal site visit by regulators in October 2024 added critical context to the Arrowsmith North project’s environmental considerations.
In response, VRX refined its Mine Development Envelope to avoid key flora species, underscoring its commitment to ecological preservation. These efforts are supported by a peer-reviewed Rehabilitation Management Plan and a detailed Offset Strategy, reflecting robust environmental stewardship.
Collaboration with agencies such as the Department of Water and Environmental Regulation and the Commonwealth Department of Climate Change ensures a comprehensive assessment, reinforcing the project’s alignment with sustainability goals.
Technical Specifications of Arrowsmith North Project
Figure 2: Arrowsmith Project Location Map
Located 270 km north of Perth, the Arrowsmith North project is poised for a 25-year operational lifecycle, producing over 2Mt tonnes per annum of high-grade silica sand with 99.7% SiO₂. Targeting Asian export markets, it serves sectors like foundry, container glass, and flat glass.
With a robust Ore Reserve of 221 Mt at 99.5% SiO₂, the project supports a potential 100-year production horizon. Production is expected to begin within 8–12 months of final environmental approvals, positioning it as a near-term growth opportunity.
Figure 3: Arrowsmith North Silica Sand Project Ore Reserves
The Arrowsmith North project features a 2Mtpa processing plant with a patented circuit and a revised capital estimate backed by a Definitive Feasibility Study (DFS). Supported by strong infrastructure, the site offers access to an unused rail line, the Brand Highway, and water from the Yarragadee North deep aquifer. Operations will leverage a hybrid gas and solar power supply. Environmental and mining approvals are expected by Q1 2025, with the Mining Proposal and Works Approval currently under EPA assessment.
Regulatory Progression and Future Trajectory
The EPA will finalise its assessment report and prepare a recommendation to the Minister for Environment within the 12-week statutory timeline. This progression provides increased certainty and momentum for the project’s potential approval.
Innovative Environmental Approach and Ecological Protection
VRX Silica’s groundbreaking Vegetation Direct Transfer (VDT) methodology is revolutionizing mining practices. This innovative technique carefully removes topsoil, preserving native flora and fauna, and is ideally suited to the region’s shallow root systems (200-300mm).
Environmental stewardship has been central to the project’s design. VRX has reduced the mine development envelope from over 1,000 hectares to 353 hectares and scaled back clearing from 412.2 hectares to 299.1 hectares. Infrastructure has been strategically relocated to minimize ecological impact, showcasing a commitment to sustainable resource development and setting a benchmark for future mining projects.
Figure 4: Vegetation Direct Transfer (VDT) method
VRX Silica underscores its commitment to ecological stewardship by minimizing impacts on local wildlife, including the Carnaby’s Cockatoo. The proposed clearing affects just 0.5% of the cockatoo’s foraging habitat within a 12-kilometer radius, reflecting a responsible and carefully balanced approach to resource development.
Market Potential and Global Demand
The global silica sand market presents a significant growth opportunity, with Asian glass production expanding at 5-6% annually, driving demand for applications like float glass, solar panel glass, and metal casting. VRX Silica is strategically poised to address this demand, leveraging its advanced projects, including Arrowsmith North, Muchea, and Boyatup Silica Sand Projects, alongside a Dandaragan Geothermal Energy Permit.
With silica sand ranking as the world’s second-most-used commodity after air and water, the Asia-Pacific region’s supply deficit further strengthens VRX Silica’s market position. The Company’s diversified portfolio and focus on high-grade silica sand position it to play a critical role in meeting this growing global need.
Figure 5: Global silica sand demand by region and market potential
Future Trajectory and Corporate Outlook
VRX Silica is on track to secure environmental and mining approvals by Q1 2025, with production slated to begin 8-12 months afterward. The Arrowsmith North Silica Sand Project aims to supply critical raw materials for downstream applications like solar panel glass production, aligning resource development with green energy solutions.
Leveraging Western Australia’s gas reserves and emerging hydrogen initiatives, the project integrates LNG, wind, solar, and hydrogen technologies to support sustainable glass manufacturing. This positions VRX Silica as a key player in both resource development and renewable energy innovation.
As of November 30, 2024, VRX Silica maintains a strong corporate profile with 628 million shares, 91 million options, and a market cap of A$35.81 million. Shares trade at A$0.057 within a 52-week range of A$0.026 to A$0.120.
For more information, visit VRX Silica’s official website.
