Path cleared for VRX to start producing silica sand next year after WA environmental approval

Shares in VRX Silica have spiked after WA Environment Minister Matthew Swinbourn gave the Arrowsmith North silica sand project a tick of approval.

Plans to clear up to 299 hectares of native vegetation to develop the project had attracted considerable opposition from environmentalists — spearheaded by the Conservation Council.

VRX said the minister’s decision clears the pathway for Arrowsmith North near coastline 270km north of Perth to start producing silica sand during the second half of next year. The majority will be sold to metal casters and glass manufacturers in Asia.

Shares in VRX were up 25 per cent to 14¢ apiece by 10.40am. Its stock has risen 260 per cent over the past six months.

Arrowsmith North has a mineral resource of 221 million tonnes at 99.5 per cent silicon dioxide and VRX wants Arrowsmith North to eventually produce more than 2mt of silica sand each year for decades.

“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,” VRX managing director Bruce Maluish said.

“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.”

The most recent cost estimate to build Arrowsmith North came in at $65 million and it would take about six months to construct.