VRX Silica (ASX: VRX) today announced that it has received Western Australian Ministerial approval under Part IV of the Environmental Protection Act 1986 (Act) for the proposed development of its 100%-owned Arrowsmith North silica sand project, north of Perth.
This follows confirmation in late June the Minister had determined the Environmental Protection Authority of WA’s assessment of Arrowsmith North was adequate and that further assessment was not required.
State environmental approval paves the way for VRX to secure remaining ancillary approvals and finalise project infrastructure agreements, binding offtake and financing.
Arrowsmith North, 270km north of Perth, contains a globally significant deposit of high-quality silica sand underpinning a long-life mining project that will enable long-term production for the foundry, container glass and flat-glass markets in Asia.
In early August, the WA Department of Mines, Petroleum and Exploration (DMPE) approved VRX’s mining proposal for Arrowsmith North, allowing for the commencement of mining operations at the project subject to standard mining and closure conditions including environmental approval.
Conditions attached to State environmental approval include staged mining, achievement of specified environmental outcomes, rehabilitation and ongoing reporting, which have been previously agreed and align with VRX’s commitment to safe, sustainable and responsible operations at Arrowsmith North.
Commenting on the receipt of WA environmental approval, VRX managing director Bruce Maluish said:
“We are delighted to receive approval from the Minister for the Environment for the development of the Arrowsmith North silica sand project.
“This is a significant milestone for VRX and clears the pathway to finalise remaining approvals and permitting. It has been a rigorous and at times exhaustive approvals process that followed due process to ensure the right and responsible outcomes.
“We now look forward to maintaining engagement with all our Arrowsmith North stakeholders as we move towards commencement of construction followed by mining. VRX is now actively focused on finalising infrastructure solutions for the project, binding offtake agreements and project finance, with a goal of first production in 2026.
“Arrowsmith North presents an opportunity for Western Australia to host an environmentally responsible, high-quality silica sand operation that can service the growing glass and foundry markets in Asia and underpin the establishment of a new long-life export industry in the State’s Mid West region.”
Arrowsmith North has the potential to support a new, long-term industry in WA’s Mid West region and deliver benefits including long-term direct and indirect employment and royalties. VRX has considerable support from a range of stakeholders, including local Indigenous groups, local shires, the Mid West Development Commission, the Mid West Chamber of Commerce & Industry and State and Federal governments.
As detailed in the updated bankable feasibility study announced in March 2024, Arrowsmith North has a JORC-compliant Proved and Probable Ore Reserve of 221Mt @ 99.5% SiO2. VRX is proposing for Arrowsmith North to ramp up from approximately 1Mtpa to produce more than 2Mtpa of silica sand for decades.
Extensive product testing by prospective customers has confirmed the attractiveness of Arrowsmith North silica sand. Globally, the silica sand market is experiencing strong growth, driven by rising demand in the construction sector — particularly for flat glass used in windows — and for automobile glass in Asia’s growing automotive industry. The foundry market is also experiencing strong growth, driven by increasing demand in established markets in South Korea, Japan and China and emerging markets in Thailand and India amid an industry wide expansion and diminishing supplies across Asia.
Australia is currently the largest exporter of silica sand in the Asia-Pacific region. Exports are dominated by multi-national groups with exports last year exceeding 3.3 million tonnes.
For Arrowsmith North, other permitting and approvals processes have run in parallel to the State environmental approvals process and State remaining approvals are expected to follow in coming weeks. These include a Part V Works Approval from the Department of Water and Environmental Regulation (DWER) for construction of the processing plant and a Groundwater Abstraction Licence also from DWER. Significantly, approval for the Mining Proposal from DMPE was granted in early August. Federal environmental approval under the accredited assessment regime from the Department of Climate Change, Energy, the Environment and Water is expected in six to eight weeks.
VRX is now focusing on finalising binding offtake agreements, project infrastructure agreements including logistics and transport, mining services, power supply and construction contracts and project finance. First production is targeted for H2 2026.
