EPA Recommends VRX Silica’s Arrowsmith North Development Proposal
Western Australia, 23 January 2025 – VRX Silica Limited (ASX: VRX) has achieved a significant milestone with the Environmental Protection Authority of Western Australia (EPA) releasing its Assessment Report for the Arrowsmith North Silica Sand Project. The report recommends the development proposal proceed, subject to specific conditions that VRX has accepted following consultations.
The recommendation marks a critical step forward in the environmental approval process for the project, further solidifying VRX’s path to commencing operations.
Review Period and Ministerial Approval The publication of the EPA’s Assessment Report triggers a statutory three-week review period. During this time, further input may be provided, and any appeals will be addressed by an independent convenor. Upon completion of this process, the proposal will be submitted to the Minister for Environment for final approval under Part IV of the Environmental Protection Act.
This announcement follows the EPA’s publication of VRX’s Response to Submissions (RtS) on 18 November 2024, highlighting steady progress toward final environmental approvals.
Significant Milestone for VRX Silica Bruce Maluish, Managing Director of VRX Silica, hailed the EPA’s recommendation as a major achievement for the company.
“The EPA’s endorsement of the Arrowsmith North Silica Sand Project demonstrates the thorough environmental assessment and consultation undertaken. This milestone brings us closer to launching a transformative industry in the Midwest region of Western Australia, delivering long-term economic and employment benefits,” Mr Maluish said.
“After the review period and resolution of any appeals, the proposal will be presented to the Minister for final approval, marking the culmination of determined efforts by VRX and its consultants.”
Environmental Safeguards The EPA’s report outlines stringent conditions to ensure environmental protection and sustainable operations. These include requirements for rehabilitation, mine closure planning, environmental monitoring, and regular reporting to relevant authorities. VRX has aligned these conditions with its commitments outlined in the RtS, reflecting the company’s dedication to best practices in environmental management.
Project Overview The Arrowsmith North project, located 270 km north of Perth, is set to produce over two million tonnes of high-grade silica sand annually over a 25-year mine life. The silica sand will be supplied to markets including foundry, container glass, and flat glass production, primarily serving Asia.
In addition to Arrowsmith North, VRX is advancing the Muchea Silica Sand Project, 50 km north of Perth, which will supply ultra-high-grade silica sand for solar panels and high-tech glass applications. The Boyatup Silica Sand Project, located 100 km east of Esperance, will further expand VRX’s production capacity for the glass industry.
Market Growth and Investment Potential The global silica sand market, valued at US$6.12 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 7.9%, reaching US$12.13 billion by 2032. With its advanced projects and strategic location in Western Australia, VRX is well-positioned to capitalise on this growing demand.
VRX Silica’s share price has seen a 27.91% increase, currently sitting at $0.049, with a market capitalisation of $36.44 million. Over the past 52 weeks, the share price has ranged between $0.026 and $0.11.
About VRX Silica Limited VRX Silica Limited is an Australian company specialising in silica sand development, with 100% ownership of several projects across Western Australia. The company’s projects, including Arrowsmith North, Muchea, and Boyatup, place it at the forefront of the global silica sand market. With strong permitting progress and substantial production capacity, VRX is poised for significant growth, delivering value to its stakeholders and contributing to the global supply of high-quality silica sand.