VRX Silica (ASX:VRX) has executed four binding offtake contracts to provide silica sand from the Arrowsmith North Project in Western Australia to Asian customers.
The company will supply a minimum of 410,000 tonnes each year to foundry, glass, water filter media, and dry sand suppliers in South Korea, Taiwan, and the Philippines.
First production of silica sand is targeted in late 2026 after the company comes to a final investment decision earlier in the year, which will lead to the construction of a processing plant and required infrastructure.
VRX intends to double production at Arrowsmith from an initial 1 million tonnes annually, ramping up to 2 million tonnes gradually.
Managing Director Bruce Maluish says that by securing these contracts to supply silica sand products recognises the company as a “reliable supplier”.
“These contracts further vindicate VRX’s strategy to ensure production of a unique Australian highly sought-after product and secure the right customers for our silica sand products for what we expect to be long-term relationships,” Maluish says.
“We remain focused on converting the remaining offtake term sheets and new interest into binding offtake agreements.
“With key project approvals in place, our marketing team is actively engaging with interested parties involved in the foundry sand and glass-making industries and responding to a number of new enquiries as our high-quality silica sand products and surety of supply become recognised in the marketplace.”
The company received environmental, works, and mining proposal approvals for the project, pushing VRX into development activities, along with mining activities, as reported by Mining.com.au.
Located 270km north of Perth, Arrowsmith North hosts a JORC-compliant ore reserve of 221 million tonnes @ 99.5% silicon dioxide.
Silica sand plays a key role in both ferrous and non-ferrous foundry industries, as well as being the primary component in glassmaking.
According to the Department of Industry Science and Resource’s September 2025 Resources and Energy Quarterly, Australia is forecast to produce 3.16 million tonnes of silica sand in 2026-27. This number has remained unchanged since the 2023-24 period.
Write to Maddison Elliott at Mining.com.au
Images: VRX Silica
