Join our daily newsletter At The Bell to receive exclusive market insights
- VRX Silica has entered into a memorandum of understanding (MOU) with China Southern Glass (CSG)
- CSG and VRX Silica aim to explore the potential for the marketing, promotion and sale in China of silica sands products from VRX Silica’s Muchea Silica Sands Project
- CSG is the largest architectural glass manufacturer in China
VRX Silica has entered into a deal with China Southern Glass (CSG). The companies will form a strategic alliance for VRX Silica’s Muchea Silica Sands Project.
The Muchea project is located 50 kilometres north of Perth, WA. The project is considered a world-class, high-grade deposit which can be utilised for glassmaking.
CSG is the largest architectural glass manufacturer in China. It’s involved in the manufacture and sale of various glass products.
“The Chinese glassmaking industry is the most dominant in the Asia-Pacific region,” VRX Silica Managing Director Bruce Maluish said.
CSG and VRX Silica aim to explore the potential for the marketing, promotion and sale in China of silica sands products from the Muchea Silica Sands Project.
The companies will also search for capital finance opportunities for the construction of production facilities at the Project. If silica sands products prove lucrative in China, the companies will develop the Muchea project into a high-quality glass manufacturing facility.
VRX Silica disclosed receiving expressions of interest from 20 manufacturers across the Asia-Pacific region with potential annual silica sand sales exceeding 1.6 million tonnes for glassmaking.
The company is confident its Muchea Project and its Arrowsmith Silica Sand Project are capable of satisfying the silica sand demand.
“This strategic alliance further highlights the potential for a significant, world-class silica sand mining operation at Muchea and supports our assessment of increasing silica sand supply constraints in the AsiaPacific region,” Bruce said.
