How Mergers Are Reinventing America’s Frac Sand Industry

Black Mountain Covia and Badger AMI deals strengthen supply chains amid rising demand and tighter safety rules

9 Oct 2025

The U.S. frac sand industry is undergoing a wave of consolidation as producers seek to secure resources, improve logistics, and bolster resilience across the energy supply chain. Rising drilling activity and stricter environmental oversight are prompting companies to expand capacity and integrate operations.

In one of the sector’s largest transactions, Black Mountain Sand merged with Covia Energy in late 2024 to form Iron Oak Energy Solutions, a major North American supplier with an annual production capacity exceeding 30mn tonnes. The deal combined premium sand reserves across the Permian Basin, the Midwest, and Appalachia, marking a move toward tighter supply chain integration and operational efficiency.

The trend continued in August 2025 when Badger Mining Corporation acquired the remaining 50 per cent interest in AMI Silica, formerly Athabasca Minerals. The purchase gives Badger full ownership of its U.S. and Canadian silica assets, aligning with its long-term goal to strengthen production and transport infrastructure.

Analysts view the consolidation as part of a broader effort to improve reliability and scale in domestic supply. “The current wave of consolidation reflects the industry’s focus on stable, domestic supply and data-driven operations,” said an energy analyst familiar with the sector.

Regulatory developments are also shaping investment. The Mine Safety and Health Administration is reviewing potential updates to silica exposure standards, which could accelerate adoption of dust-control systems and automated processing. Leading operators are investing in cleaner, more efficient plants to meet future compliance and safety targets.

Other producers, including Smart Sand and U.S. Silica, are exploring partnerships and logistics upgrades to reduce costs and improve delivery performance. Though details remain limited, both are positioning for a more data- and infrastructure-driven market.

Industry participants say the consolidation signals confidence in the continued importance of domestic sand to U.S. energy production. “This sector is not fading, it’s adapting,” said a spokesperson for one producer. “Scale and reliability are the new differentiators.”

As mergers continue, companies that combine operational depth with digital innovation are expected to lead. The reshaping of the frac sand market marks a strategic reconfiguration of the supply network underpinning America’s energy growth.