VRX Silica (ASX: VRX) Advances Towards Environmental Approval for Arrowsmith North

30 May 2024 - VRX Silica Limited (ASX: VRX), a leading player in the silica sand industry, has taken a significant step forward in the environmental approval process for its Arrowsmith North project. The Environmental Protection Authority of Western Australia (EPA) has formally acknowledged receipt of VRX’s amended Response to Submissions (RtS) document, marking a crucial milestone in the company’s journey towards securing final environmental approval.

Key Highlights:

- EPA Acknowledgement: The EPA has received VRX's updated RtS, a key step in the environmental approval process.

- Next Steps: Subject to EPA's review and acceptance, the RtS will be published on the EPA’s website, paving the way for the assessment report.

- Project Significance: Arrowsmith North is poised to be a major supplier of high-grade silica sand, addressing the supply shortfall in the Asia-Pacific region.

Environmental Approval Journey

On 31 October 2023, VRX updated the ASX on its progress with the environmental approval application for Arrowsmith North. Following the submission of the RtS, the EPA gathered feedback from relevant state and federal departments, including the Commonwealth Department of Climate Change, Energy, the Environment, and Water (DCCEEW).

Informal preliminary feedback was provided to VRX on 18 January 2024, which the company promptly addressed. Subsequently, on 11 April 2024, VRX received formal comments from the EPA and DCCEEW, necessitating further revisions to the RtS. The updated RtS has now been lodged and formally acknowledged by the EPA.

Impact and Future Steps

Bruce Maluish, Managing Director of VRX Silica, emphasized the importance of the RtS in the EPA assessment process. “The Response to Submissions is a vital component of the EPA assessment process and, when published, is an acceptance by the EPA that the information supplied by the Company is adequate for the EPA to complete its assessment,” he stated.

(Source: VRX ASX Announcement)

The publication of the RtS will allow the EPA to prepare an assessment report for the Western Australian Environment Minister, recommending conditions for the project's approval. This step is pivotal for VRX, as it moves closer to commencing operations at Arrowsmith North, a project with a minimum 25-year mine life and the capability to produce over 2 million tonnes of high-grade silica sand annually.

About Arrowsmith North and VRX Silica

Located 270km north of Perth, Arrowsmith North is one of several silica sand projects being developed by VRX. The project aims to supply high-grade silica sand to the foundry, container glass, and flat glass markets in Asia, where there is a significant demand-supply gap.

VRX Silica Limited is the most advanced pure-play silica sand company listed on the ASX, with projects not only at Arrowsmith but also at Muchea and Boyatup in Western Australia. Muchea, just 50km north of Perth, boasts ultra-high-grade silica sand, essential for ultra-clear glass used in solar panels and other high-tech applications. Boyatup, located 100km east of Esperance, is under development to serve the glass market.

Investment Potential

VRX Silica's strategic positioning in the silica sand market and its progress towards environmental approvals make it a compelling opportunity for investors. The ongoing development of its projects aligns with the increasing global demand for high-quality silica sand, particularly in the Asia-Pacific region, which is experiencing a supply shortfall driving up prices.

Conclusion

The EPA's acknowledgement of VRX Silica's updated RtS document for Arrowsmith North is a promising development for the company. With environmental approvals on the horizon, VRX is well-positioned to become a major supplier of silica sand in the region, offering significant value to its shareholders and meeting the growing market demands.

This impactful announcement underscores VRX Silica’s commitment to advancing its projects while adhering to environmental standards, making it a standout investment in the Australian market.

The most recent trading price for $VRX shares was A$0.044 as of 31st May 2024.