Frac Sand Plays Big Role in $950 Million in Second-Half 2018 U.S. Mine Completions

Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking more than $954 million in planned U.S. mine completions in the second half of this year. These include gold mines, a limestone quarry and a coal mine. However, as unconventional oil and gas drilling continues heating up in the U.S., particularly in the Permian Basin, sand used for the hydraulic fracturing, or fracking, of shale rock is playing an ever-bigger role in the U.S. mining scene. Industrial Info is tracking $382 million in planned frac sand mine completions in the U.S. in the second half of 2018.

Frac sand is used along with a pressurized liquid to fracture and hold open cracks created in shale formations, allowing oil and gas to be extracted. Frac sand has a very round and uniform grain size. Thousands of tons of frac sand are needed for the drilling of an unconventional well. Shipping frac sand is big business for U.S. railroad operators and can add to the costs of the sand for oil and gas drillers. Therefore, locating frac sand mines near unconventional oil and gas drilling sites is often the most economical way to get the frac sand to market. Most of the frac sand mine completions being tracked by Industrial Info are in Texas, home to the Permian Basin, which is the largest oil patch in the U.S.

Among the largest frac sand mines to wrap up in the second half of this year is Black Mountain Sand's (Fort Worth, Texas) El Dorado mine and processing plant on the Vest Ranch, outside of Kermit, Texas. The open-pit mine will produce 4 million tons per year of frac sand. Construction kicked off early last year and is expected to be wrapped up in the fourth quarter of this year. For more information, see Industrial Info's project report.

In Monahans in West Texas, Atlas Sand Company LLC (Austin, Texas) will wrap up construction on a 4 million-ton-per-year frac sand mine in the third quarter. The mine will have an onsite processing plant. Construction began late last year. The mine has an estimated total investment value of $100 million. For more information, see Industrial Info's project report.

Frac sand mining projects seem to be on the rise. According to the United States Geological Survey (USGS), about $3.5 billion of sand and gravel was produced in the U.S. in 2017, an increase of 32% from 2016, "owing primarily to increased activity in the oil and gas sector." The USGS reports that about 63% of mined sand and gravel was used in fracking. The U.S. is the world's largest producer and consumer of industrial sand and gravel.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.