VRX Silica (ASX: VRX) has strengthened its position as a key supplier of premium silica sand in the Asia-Pacific region, securing four binding offtake contracts from its Arrowsmith North silica sand project in Western Australia.
The agreements cover the supply of an aggregate minimum of 410,000 tonnes per annum of high-quality silica sand products.
Buyers include two well-established suppliers to the foundry industries in South Korea, a major supplier of foundry, glassmaking, water filter media and sized dry sand in Taiwan, and a glass manufacturing supplier in the Philippines.
These new contracts represent a major milestone for VRX Silica, following the company’s receipt of environmental, works and mining proposal approvals in August and September.
With these key permits confirmed, construction and operation of the Arrowsmith North processing plant, associated infrastructure, and initial mining activities can now commence.
Located 270 kilometres north of Perth, the Arrowsmith North project contains a globally significant deposit of high-purity silica sand that underpins long-term production targeting growing foundry, container glass, and flat-glass markets across Asia.
The updated bankable feasibility study released in March 2024 identified a JORC-compliant Proved and Probable Ore Reserve of 221 million tonnes at 99.5% SiO₂.
VRX plans to ramp up production progressively from an initial output of approximately one million tonnes per annum to more than two million tonnes per annum over time.
The recently signed offtake contracts collectively represent close to half of the project’s proposed commencement capacity, demonstrating strong early market confidence in the operation.
The company’s marketing strategy is focused on establishing a portfolio of long-term offtake commitments with reputable partners to underpin production growth and operational cash flow.
Its objective is to maintain a balance between pricing exposure and revenue certainty while leveraging sustained demand for high-quality silica sand across the region.
VRX Managing Director Bruce Maluish said the signing of these binding contracts validated the company’s market positioning and growth outlook.
“We are delighted with the support from our offtake partners as we secure initial binding offtakes for Arrowsmith North,” said Maluish.
“VRX is seen as a reliable supplier of high-grade silica sand products and Australia as a dependable jurisdiction.”
Maluish said the new binding agreements reinforced VRX’s strategic approach to producing a distinctive Australian silica sand product and building enduring partnerships with the right customers across key markets.
He added that the company continues to advance discussions on remaining term sheets and fresh interest, with its marketing team engaging prospective buyers in the foundry and glass manufacturing sectors as recognition grows for the quality and reliability of its supply.
VRX is targeting first production from Arrowsmith North in late 2026, following a final investment decision and construction start planned for the first half of 2026.
The project’s development will mark a critical step in strengthening Australia’s role as a stable and long-term supplier of high-quality silica sand to Asia’s industrial and manufacturing sectors.
