PERTH (miningweekly.com) – ASX-listed potash developer BCI Minerals this week told shareholders that it was looking at quantifying and obtaining additional funding for the anticipated cost blow-out at its Mardie potash project, in Western Australia.
The company is currently finalising a cost and design review of the Mardie project, as well as a new base case financial model, after previously warning shareholders that project costs were expected to be "materially more" than the previously estimated A$913-million.
However, the company this week said that it expected to generate more revenue and earnings than previously projected, given the current and projected salt and sulphate of potash (SoP) prices.
BCI said in a statement that discussions were continuing with prospective funding providers, with the company looking at a combination of equity, debt and asset sales.
The company is expected to release an updated business case for the Mardie project by April.
Mardie is expected to produce 5.35-million tonnes a year of salt and 140 000 t/y SoP, over a projected mine life of at least 60 years.