FREDERICK, Md., Sept. 27, 2017 /PRNewswire/ -- U.S. Silica
Holdings, Inc. (NYSE: SLCA) announced today that it plans to build
a second, state-of-the-art frac sand mine and plant in West Texas to serve the rapidly-growing
Permian Basin. The new facility, located about 60 miles north of
Midland, near Lamesa, Texas, is expected to produce
approximately 2.6 million tons annually and is part of the
Company's previously announced plan to add 8 to 10 million tons of
new Brownfield and Greenfield
capacity to meet surging frac sand demand.
The $150 million project will be
funded with cash on hand and cash flow from operations. The
Company has secured customer commitments for the purchase of 1.2
million tons per-year of sand including cash pre-payments, and for
up to four Sandbox crews to deliver the sand directly from the mine
to customer well sites.
Construction of the mine and plant will begin immediately, and
initial production is expected in March of 2018. The 3,500-acre
site has over 30 years of reserves of fine grade 40/70 and 100
mesh. Besides having high quality reserves, the site has ample
water supply, good transportation infrastructure and is located
outside of the area in West Texas
that has been identified as providing potential habitat for the
Dunes Sagebrush Lizard.
"Mine location and logistics capabilities are key competitive
advantages to fully serve our customers in the Permian,'' said
Bryan Shinn, president and chief
executive officer. "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." Shinn added that, "Being able to deliver a total mine
to blender sand solution by utilizing our Sandbox system further
extends our industry leading position."
With the addition of 2.6 million tons of capacity at
Lamesa, the Company's total
capital expansion program is now expected to deliver nearly 9.5
million tons of incremental annual supply, including 4 million tons
at Crane County, and 2.8 million
tons at our Tyler, Kosse and Pacific sites collectively.
About U.S. Silica
U.S. Silica Holdings, Inc., a member of the Russell 2000, is a
leading producer of commercial silica used in the oil and gas
industry, and in a wide range of industrial applications. Over its
117-year history, U.S. Silica has developed core competencies in
mining, processing, logistics and materials science that enable it
to produce and cost-effectively deliver over 200 products to
customers across our end markets. The Company currently operates
nine industrial sand production plants and nine oil and gas sand
production plants. The Company is headquartered in Frederick, Maryland and also has offices
located in Chicago, Illinois and
Houston, Texas.
U.S. Silica Holdings, Inc.
Michael Lawson
Vice President of Investor Relations and Corporate
Communications
(301) 682-0304
lawsonm@ussilica.com
View original content with
multimedia:http://www.prnewswire.com/news-releases/us-silica-to-build-second-frac-sand-mine-and-plant-in-the-permian-300526704.html
SOURCE U.S. Silica Holdings, Inc.