Silica sand has supported human progress throughout history, being a key raw material in the industrial development of the world, especially in the glass, metal casting and ceramics industries.
Globally and particularly in Asia, silica sand is in a growth phase due to increasing demand from the construction sector as a raw material for flat glass, with both volume and value having increased worldwide.
Flat glass market outlook
Sales of silica sand experienced a compound annual growth rate of about 8.7% in value terms from 2009 to 2016, with a market value of US$6.3 billion.
The Asia Pacific flat glass market is currently experiencing high growth because of increased demand from the construction and automotive sectors.
Total investment in infrastructure in Asia Pacific
VRX silica sand projects
VRX Silica’s recent bankable feasibility study (BFS) for the Muchea Silica Sand Project in WA demonstrated outstanding financial metrics.
The BFS, which outlines an ungeared net present value of $338 million based on 25 years of a potential mine life of 100-plus years, indicates that Muchea is capable of producing very high-grade silica sand products.
The company’s BFS for the Arrowsmith Central Silica Sand Project north of Perth also revealed compelling financial metrics which complement the Arrowsmith North deposit.
The BFS shows an ungeared net present value of $147.6 million based on 25 years of a potential mine life of plus-35 years.
Timeline towards development and production