Sand-Drying Plant Nearing Completion in Wisconsin Indicative of Strong Frac Sand Construction Market

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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite a depressed economy and falling natural gas prices, there is still money to be made in the frac sand market. More and more new sand mining companies are coming online or expanding their current portfolios.

Construction is under way on a $50 million, 85-acre frac sand drying plant and rail transfer yard in Barron County, just east of Poskin, Wisconsin, along Highway 8. The plant marks a third location for Superior Silica Sand LLC (Fort Worth, Texas), which is part of the Insight Equity (Southlake, Texas) family of companies. Market & Johnson Incorporated began moving dirt in early August.

When operational, the new site will be capable of producing up to 2.4 million tons per year of frac sand. Canadian National Railway (NYSE:CNI) (CN Railway) (Montreal) is investing $35 million to rehabilitate about 40 miles of rail track between the new site and Ladysmith, Wisconsin. Construction of the rail project started in the spring, when the sand project was still being permitted. Partnering with CN Railway will allow Superior Silica Sand to move frac sand from Wisconsin to shale drilling areas across the U.S. and Canada.

Both projects are scheduled to be completed by November 15, 2012.

Superior Silica Sand currently operates a sand processing plant in Kosse, Texas. Opened in 2009, this facility has the capacity to supply more than 900,000 tons per year of proppant frac sand from feed imported from various areas of Wisconsin. In 2010, Superior Silica Sand opened a second plant in Kosse, Texas, capable of processing 450,000 tons per year from the company's Kosse Quarry.

Industrial Info is currently tracking more than 25 active industrial sand projects globally, with more and more sand projects being added every week. Industrial Info is tracking three industrial sand projects in the construction phase with 17 planned for kick-off in 2013. Twelve sand projects (mines and process plants) are currently in the permitting stage.

Even with more and more U.S. counties adopting moratoriums on new sand mining permits so that additional environmental impact studies can be made, sand mining companies are still successfully moving forward with sand mining plans.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.