Name of the Project
Mardie salt and potash project.

Location
On the Pilbara coast of Western Australia.

Project Owner/s
Potash developer BCI Minerals.

Project Description
An optimisation study has delivered a bigger project and an improved layout, compared with the July 2020 definitive feasibility study (DFS).

An expansion of the evaporation area has resulted in an increase of about 20% in salt production, from 4.4-million tonnes a year in the DFS to 5.35-million tonnes a year in the optimisation study, as well as an increase in sulphate of potash (SoP) production, from 120 000 t/y to 140 000 t/y.

Mardie will ultimately include a 100 km² evaporation pond and crystalliser system, two processing plants and a new export facility.

Using an inexhaustible seawater resource and a production process driven mainly by natural solar and wind energy, there is potential to optimise and expand the project beyond the currently planned production levels.

The project’s operating life is estimated at a minimum of 60 years.

Potential Job Creation
During construction, 490 jobs are expected to be created, while 2 200 jobs are expected to be created during operations.

Net Present Value/Internal Rate of Return
The project’s estimated ungeared net present value has increased from A$1.19-billion, at a 7% discount rate, in the DFS, to $1.67-billion in the optimisation study.

Capital Expenditure
Main construction capital costs have increased from A$779-million in the DFS to A$913-million in the optimisation study. The project has an internal rate of return of 16.1%.

Planned Start/End Date
BCI aims to start construction in early 2022, subject to securing secondary statutory approvals, which will allow for first salt sales to be achieved by the fourth quarter of 2024 and first SoP sales by the first quarter of 2026.

Latest Developments
BCI Minerals has flagged cost increases at its Mardie salt and potash project, days after starting construction.

BCI, which broke ground on March 25 at Mardie, has said that the company expects the current inflationary pressures on construction inputs such as fuel, labour, transport and equipment will lead to increased capital cost for particularly the civil component of the project.

“Cost pressures are evident across the mining and construction sectors in Western Australia. We are closely monitoring and managing our contracts and are reviewing the inflationary impact on the total Mardie capital cost,” MD Alwyn Vorster has said.

An updated estimate of total project capital cost and projected financial returns is expected to be released before the end of June.

Key Contracts, Suppliers and Consultants
The DFS was managed by BCI, with support from GR Engineering Services (DFS lead engineer), additional support from Worley, CMW Geosciences, Preston Consulting, RPS, Roskill, Argus Consulting, Braemar ACM Shipbroking and KPMG, besides others; and Engenium (project management contractor).

Contact Details for Project Information
BCI Minerals, tel +61 8 6311 3400 or email info@bciminerals.com.au.