Arrowsmith North Silica Sand Project Reaches Major Milestone in Environmental Approvals Process

Key Highlights

• EPA releases Assessment Report for VRX Silica’s (ASX: VRX) Arrowsmith North Project.
• Recommendation for development approval subject to conditions.
• Three-week review period initiated before Ministerial consideration.
• Significant step in advancing Western Australia’s silica sand mining industry.

A Game-Changer for VRX Silica

VRX Silica Ltd (ASX: VRX) is poised to revolutionize the silica sand industry in Western Australia, with its Arrowsmith North project achieving a pivotal milestone in the environmental approvals process. The Environmental Protection Authority of Western Australia (EPA) has published its Assessment Report, recommending the project proceed subject to conditions that have already been accepted by VRX Silica (ASX: VRX).

This achievement underscores VRX Silica’s (ASX: VRX) commitment to environmentally responsible mining, paving the way for significant economic and social benefits in the Midwest region of Western Australia.

EPA’s Assessment: A Significant Milestone

The EPA’s comprehensive Assessment Report is a key document in the approval pipeline. It highlights:

• Recommendation for Approval: The EPA supports the Arrowsmith North development proposal, provided specific environmental conditions are met.
• Conditions Accepted by VRX Silica (ASX: VRX): Following consultation, VRX Silica (ASX: VRX) has agreed to all conditions, reinforcing its dedication to best practices in rehabilitation, mine closure, and environmental monitoring.
• Three-Week Review Period: The publication initiates a statutory review period, during which appeals can be lodged. An independent appeals convenor will then address any concerns before the Minister for Environment considers the proposal for final approval.

Bruce Maluish, Managing Director of VRX Silica (ASX: VRX), expressed his enthusiasm, “Publication by the EPA of its Assessment Report for Arrowsmith North marks the culmination of our efforts. This milestone positions VRX to unlock a new industry in the Midwest, delivering long-term benefits to the state.”

Unlocking a Finite Resource

Silica sand, a critical material for glassmaking, is the world’s most-used commodity after air and water. Its applications range from solar panels to high-tech glass and foundry casting. With a growing supply shortfall in the Asia-Pacific region, the demand for high-grade silica sand is surging.

VRX Silica’s (ASX: VRX) Arrowsmith North project is strategically positioned to capitalize on this demand:

• Location: Situated 270 km north of Perth, the site boasts a projected mine life exceeding 25 years.
• Production Capacity: Capable of producing over 2 million tonnes of high-grade (99.7% SiO2) silica sand annually.
• Target Markets: The project aims to supply markets in Asia, addressing critical shortages.

Environmental and Economic Impacts

The Arrowsmith North project represents more than just economic opportunity—it sets a benchmark for sustainable mining practices. Key aspects include:

• Commitment to Rehabilitation: The conditions outlined by the EPA emphasize thorough mine closure and rehabilitation processes to ensure minimal long-term environmental impact.
• Local Benefits: The project is expected to generate employment opportunities and stimulate economic growth in the Midwest region.

Arrowsmith North is one of several silica sand projects under VRX Silica’s (ASX: VRX) umbrella. The company’s portfolio includes:

• Muchea Silica Sand Project: Located 50 km north of Perth, this ultra-high-grade project (99.9% SiO2) is tailored for applications requiring ultra-clear glass, such as solar panels.
• Boyatup Silica Sand Project: Positioned 100 km east of Esperance, Boyatup is under development and aims to supply the glass market.
• Geothermal Energy Potential: VRX Silica (ASX: VRX) is also exploring geothermal energy opportunities in the Dandaragan region, highlighting its commitment to diversified and sustainable ventures.

Capital Structure and Market Performance

Despite these advances, VRX Silica’s (ASX: VRX) market performance reflects broader challenges:

• ASX Listing: Shares are trading at $0.048, down 11.63% from previous levels.
• Volume: Over 9 million shares traded on January 9, 2025.
• 52-Week Range: Share prices have fluctuated between $0.026 and $0.109, with a one-year return of -51.63%.

These figures underscore the importance of continued progress on key projects like Arrowsmith North to bolster investor confidence.

Next Steps in the Approval Process

With the EPA Assessment Report published, the focus now shifts to the statutory three-week review period. During this time:

• Appeals, if any, will be considered by an independent convenor.
• The Minister for Environment will evaluate the proposal under Part IV of the Environmental Protection Act.
• Upon approval, VRX Silica (ASX: VRX) will commence the final stages of project development.

Looking Ahead

VRX Silica (ASX: VRX) is at the forefront of addressing a global silica sand supply crunch. The Arrowsmith North project’s potential to deliver high-grade silica sand to international markets positions it as a linchpin for industry growth.

As the company advances its environmental approvals, its long-term vision of sustainable mining and economic development continues to resonate. Investors and stakeholders alike will be closely monitoring the Ministerial decision, which could set the stage for a transformative era in Western Australia’s silica sand sector.