VRX Silica secures new offtake term sheets for Arrowsmith North
ASX-listed silica sand developer VRX Silica has signed additional nonbinding offtake term sheets for the supply of silica sand from its Arrowsmith North project, in Western Australia.
The agreements target the foundry industries in South Korea, Japan, and Taiwan.
The South Korean partners include Namgwang Casting Materials and Woori Corporation, both suppliers to the country’s foundry industry. Japan’s Yamakawa Sangyo and Taiwan’s FarnHwa Enterprise, the latter known for water filter media and sized dry sand, have also committed to the term sheets. These offtakers supply major end-users and have verified the quality of Arrowsmith North silica sand through testing.
The new agreements add 440 000 t/y to the offtake interest for Arrowsmith North silica sand, bringing the total to 640 000 t/y. This figure is expected to grow further as VRX progresses discussions with additional parties. Permitting for the project, including environmental and mining approvals, is anticipated to be completed by the first quarter of 2025, supporting the company’s project financing initiatives.
“Increasing interest in our Arrowsmith North silica sand foundry products is demonstrated by these additional term sheets, and we expect more to follow. These companies are established leaders in their industry, and VRX is pleased they have signed up as we expect them to be long-term buyers,” VRX Silica MD Bruce Maluish said.
Maluish highlighted the significance of the South Korean and Japanese foundry industries, particularly as support services for the automotive and marine sectors. “VRX’s engagement with these buyers will expand awareness of the quality of our product in these large and important Asian markets and will lead to further inquiries from parties keen to secure long-term supplies of Arrowsmith North silica sand,” he said.
The company remains focused on converting the non-binding term sheets into binding offtake agreements to strengthen its capital funding requirements. “Importantly, these term sheets further vindicate VRX’s strategy to ensure production of a unique Australian highly sought-after product and to secure the right customers for our silica sand products,” Maluish added.
“Market demand for the high-quality foundry sand we can produce remains very strong and, having now signed up five reputable partners, will only further strengthen our credibility and position in the marketplace. We will focus on converting these non-binding term sheets into binding offtake agreements to support our capital funding requirements and continue to progress talks with other parties involved in the foundry sand and glass-making industries,” he concluded.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation