U.S. Silica to build new frac sand mine and plant in Permian Basin
U.S. Silica Holdings announced that its Board of Directors has approved the construction of a new, state-of-the-art frac sand mine and plant in West Texas to serve the rapidly-growing Permian Basin. The new facility is expected to produce approximately 4M tons annually and is part of the company's previously announced plan to add approximately 8M-10M tons of new Brownfield and Greenfield capacity to meet surging frac sand demand. The $225M project will be funded from cash on hand and cash flow from operations and is expected to be supported by long-term supply contracts with leading oilfield companies, which include cash pre-payments. Construction will begin immediately and initial production is scheduled for late in the fourth quarter of 2017. The 3,200-acre site has over 30 years of reserves of fine grade 40/70 and 100 mesh sand with excellent physical properties.