U.S. Silica Holdings, Inc. (SLCA)

[eFinanceMarkets]

$SLCA U.S. Silica to build second frac sand facility for Permian Basin

U.S. Silica (NYSE:SLCA) says it plans to spend $150M build a second frac sand mine and plant in west Texas to serve the Permian Basin.

SLCA expects the new facility to produce ~2.6M tons/year of frac sand, as part of its effort to add 8M-10M tons of new capacity to meet surging demand, and has secured customer commitments for the purchase of 1.2M tons/year.

SLCA says the 3,500-acre site has more than 30 years of reserves of fine grade 40/70 and 100 mesh.

Construction will begin immediately, and initial production is expected in March 2018.