VRX Silica (ASX:VRX) Managing Director Bruce Maluish says the company is moving closer towards production at its Arrowsmith North Silica Sand Project in Western Australia, after receiving works approval from the Department of Water and Environmental Regulation.
Works approval allows for the development of Arrowsmith North, in particular construction and operation of the processing plant and associated infrastructure.
The Environment Protection Act 1986 requires a work approval to be obtained before constructing a prescribed premises and makes it an offence to cause an emission or discharge unless a licence or registration is held for those premises.
This news comes after VRX was granted state environmental approval which enables the company to secure the remaining ancillary approvals and finalise project infrastructure agreements, binding offtake and financing.
VRX, which has a market capitalisation of $104.63 million, proposed to produce more than 2 million tonnes per year of silica sand for decades. The first production is targeted for the second half of 2026.
The company is focused on obtaining the remaining approvals and permits, finalising binding offtake deals, project infrastructure agreements, alongside contracts and project finance.
Arrowsmith contains a proved and probable ore reserve of 221 million tonnes @ 99.5% silicon dioxide.
Globally, the silica sand market is growing, driven by the rising demand in the construction sector and for automobile glass in Asia’s automotive industry.
Australia is currently the largest exporter of silica sand in the Asia-Pacific region – with exports exceeding 3.3 million tonnes in 2024.
Write to Aaliyah Rogan at Mining.com.au
Images: VRX Silica
