US Silica to build new frac sand mine and plant to serve Permian Basin

US Silica Holdings has unveiled plans to build a second frac sand mine and plant in West Texas to serve oil and gas clients in the Permian Basin.

On a 3,500-acre site located 60m north of Midland, near Lamesa, Texas, the new $150m facility is expected to produce around 2.6 million tonnes per annum.

The development is part of the company’s previously announced plan to add eight to ten million tonnes of new Brownfield and Greenfield capacity to meet growing frac sand demand.

US Silica president and CEO Bryan Shinn said: “Mine location and logistics capabilities are key competitive advantages to fully serve our customers in the Permian.

“I believe that our new site in Lamesa, together with our Crane County facility, gives us the best West Texas mine footprint. We expect to be closer than competitors to almost half of the horizontal rigs operating today in the Permian and that should translate into better service and lower overall cost for customers.

“Being able to deliver a total mine to blender sand solution by utilising our Sandbox system further extends our industry-leading position.”

The company has gained customer commitments in connection with the purchase of 1.2 million tonnes a year of sand.

Construction of the mine and plant is scheduled to commence shortly, with initial production expected in March next year.

The site containing the proposed facility is said to have more than 30 years of reserves of fine grade 40/70 and 100 mesh.

Production from the Lamesa facility is expected to enable the company to deliver nearly 9.5 million tonnes of incremental annual supply under its capital expansion programme.