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VRX Silica closes in on offtake partner

 

An Australian-based sand miner has maintained strong interest from its silica sand customers after shipping samples in early December 2020.

VRX Silica highlighted that the samples had been sent to eight potential customers, according to an ASX announcement on 31 December, 2020.

VRX managing director Bruce Maluish said COVID-19 had not impacted southeast Asia’s interest in silica.

“VRX is in an enviable position as we continue to engage with potential customers in South Korea, Japan, Philippines, Malaysia and Thailand,” he said.

“Demand is growing for high quality silica sand products across southeast Asia while the supply side continues to be squeezed.

“Despite the inevitable slowdown earlier this year [2020] due to COVID-19, most organisations in southeast Asia we are engaging with have expressed positive sentiment towards stimulus spending and growth in construction in general across the region, and are gearing up their operations for 2021 and beyond.”

Maluish said VRX Silica is moving closer to selecting its first offtake partner and expects to agree terms this year.

“VRX has received a tremendous level of interest for offtake from both our Arrowsmith North and Muchea projects, and we are much closer to selecting our first offtake partner to underpin development. We expect to agree terms in early 2021.”

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