VRX has Western Australia silica sand mining leases in sight
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Special Report: VRX is another step closer towards becoming a silica sand supplier with the expected registration of a key Indigenous Land Use Agreement (ILUA) today.
The ILUA with the Yamatji Marlpa Aboriginal Corporation covers the company’s Arrowsmith North and Arrowsmith Central projects that host large resources of high-purity silica sand, which is in short supply.
High-purity silica sand is used for making both flat glass and container glass that require very low levels of impurities. It is also used for high-tech applications such as solar panels, fibre-optics, LCD panels and LED lights.
VRX Silica (ASX:VRX) expects the mining leases over the two projects to be granted shortly after formal notification of the ILUA’s registration.
The IULA is an alternative settlement by the Western Australian government that supersedes negotiations that were underway between VRX, the Yamatji Marlpa Aboriginal Corporation and the Southern Yamatji Working Group over the terms of a native title project agreement for the Arrowsmith Projects.
“The conclusive registration of the Yamatji Nation ILUA gives us a clear line of sight on the grant of mining leases for VRX’s Arrowsmith North and Central Silica Sands Projects and we are anticipating the imminent grant of these and related miscellaneous licences,” managing director Bruce Maluish said.
“The ILUA draws a necessary end to our efforts and those by the Southern Yamatji Working Group and YMAC to establish and execute a native title project agreement.
“However, we are confident the strong and supportive relationships VRX has established with the Southern Yamatji People, in particular, will benefit all parties as we advance development of the Arrowsmith Projects.”
Arrowsmith North is expected to be the first project off the rank, not surprising given that the bankable feasibility study has estimated net present value and internal rate of return – both measures of a project’s anticipated profitability – at $242.3m and 77 per cent respectively.
It is expected to generate total sales of nearly $2.8bn from the mining of 53Mt of silica sand at a rate of 2Mt per annum.
There is also plenty of sand within Arrowsmith North with a resource of 771 million tonnes grading 98 per cent SiO2 and an ore reserve of 223Mt at 99.7 per cent SiO2.
This article was developed in collaboration with VRX Silica, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.