Arrowsmith North Project Cleared for Mining with 221Mt Ore Reserve and 2026 Production Target
VRX Silica Limited has obtained crucial environmental approval for its Arrowsmith North Silica Sand Project, paving the way for binding contracts and first production targeted in late 2026.
- Environmental approval granted by WA Minister for Environment
- Mining proposal approved, enabling commencement of operations
- First production targeted for second half of 2026
- Project supplies high-quality silica sand to Asian glass and foundry markets
- Final permits, offtake agreements, and financing in advanced stages
Environmental Approval Clears Major Hurdle
VRX Silica Limited has achieved a significant regulatory milestone with the Western Australian Minister for Environment granting environmental approval for its 100%-owned Arrowsmith North Silica Sand Project. This approval, formalized through Statement 1252, follows a rigorous assessment process by the Environmental Protection Authority and clears the path for the company to finalize remaining permits, binding offtake agreements, and project financing.
Project Positioned for Long-Term Production
Located 270 kilometres north of Perth, Arrowsmith North hosts a globally significant deposit of high-purity silica sand, essential for manufacturing foundry molds, container glass, and flat glass primarily destined for Asian markets. The project boasts a JORC-compliant Ore Reserve of 221 million tonnes at 99.5% silica content, with plans to ramp up production from approximately 1 million tonnes per annum to over 2 million tonnes per annum over its multi-decade mine life.
Market Demand and Strategic Importance
The global silica sand market is experiencing robust growth, driven by expanding construction and automotive glass demand in Asia, alongside a tightening supply landscape. VRX’s Arrowsmith North project is well positioned to capitalize on this trend, offering a high-quality, environmentally responsible source of silica sand. Australia currently leads silica sand exports in the Asia-Pacific region, and Arrowsmith North aims to reinforce this position with a new long-life export industry in Western Australia’s Mid West region.
Next Steps Towards Production
With the environmental approval secured, VRX has also received mining proposal approval from the Department of Mines, Petroleum and Exploration, allowing mining operations to commence subject to standard conditions. The company is actively progressing other key permits, including works approval and groundwater licenses, while advancing binding offtake agreements and infrastructure contracts. First production is targeted for the second half of 2026, with project finance discussions well underway.
Commitment to Responsible Development
VRX has emphasized its commitment to sustainable and responsible operations, with environmental conditions including staged mining, rehabilitation, and ongoing reporting agreed upon with regulators. The project enjoys broad stakeholder support, including local Indigenous groups, regional development bodies, and government agencies, underscoring its potential to deliver long-term economic and employment benefits to the Mid West region.
Bottom Line?
With environmental approval secured, VRX is poised to transition from planning to production, but final permits and financing remain critical to watch.
Questions in the middle?
- When will federal environmental approval be finalized, and will it impose additional conditions?
- What are the terms and volumes of the binding offtake agreements currently under negotiation?
- How will VRX secure project financing, and what impact will this have on the project timeline?
