VRX Silica (ASX: VRX) has received works approval from the Department of Water and Environmental Regulation (DWER) for the proposed development of its 100%-owned Arrowsmith North silica sand project, north of Perth.
This follows environmental approval from the Minister for the Environment and the approval for the mining proposal from the Department of Mining, Petroleum and Energy last month.
Works approval allows for the development of Arrowsmith North, in particular construction and operation of the processing plant and associated infrastructure.
As is customary, the works approval for Arrowsmith North comes with specific conditions to manage environmental impacts. The conditions attached to the approval have been previously accepted by VRX and align with VRX’s commitment to safe, sustainable and responsible operations at Arrowsmith North
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.
Commenting on the receipt of the DWER works approval, VRX managing director Bruce Maluish said:
“We are pleased to have received works approval for Arrowsmith North so soon after receiving State environmental approval. This is yet another significant milestone for VRX and the development of Arrowsmith North as we move towards production.”
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.
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.
