VRX Silica has entered into non-binding offtake agreements with foundry industries in the Republic of Korea, Japan and Taiwan for the supply of silica sand products from its Arrowsmith North silica sand project.
The new term sheets comes after the Environmental Protection Authority of Western Australia recommended the Arrowsmith North development proceed, pending agreed conditions.
The term sheets set out terms and conditions for the supply of 440,000 tonnes per annum of AFS20, 35 and 55 certified foundry sand across four years.
The offtake partners involved include Namgwang Casting Materials Ind Co. Ltd and Woori Corporation from South Korea, Yamakawa Sangyo Co. Ltd from Japan, and FarnHwa Enterprise Co. Ltd from Taiwan.
VRX managing director Bruce Maluish said increasing interest in the Arrowsmith North silica sand foundry products is demonstrated by the additional term sheets.
“The South Korean and Japanese foundry industries in particular are an extensive support service for the automobile and marine industries,” he said.
“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.
“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 said partnering with five reputable partners will only strengthen VRX’s 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 said.
The company now has agreements totalling 640,000 tonnes, including 200,000 tonnes from Dong A and Dong Nam in South Korea.
VRX is expected to finalise permitting for Arrowsmith North by the end of the first quarter of 2025.
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