Photo by: BCI Minerals
Name of the Project
Mardie salt and potash project.
Location
On the Pilbara coast of Western Australia.
Project Owner/s
Australia-based resources company 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.
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$850-million in the optimisation study.
Planned Start/End Date
First salt sales are expected by the third quarter of 2024, and first SoP sales by the fourth quarter of 2025.
Latest Developments
BCI Minerals has taken a final investment decision (FID) on the project after securing A$740-million in debt funding for the project.
Subject to final approvals, main construction for the Mardie project is targeted for in early 2022.
The FID will result in Mardie becoming the first new solar salt operation in Western Australia in almost 25 years, and the first to produce salt and SoP from seawater. The project has strong green credentials with the Indian Ocean the inexhaustible feedstock, and natural solar and wind energy providing 99% of the energy required to produce salt and SoP.
BCI will now work to gain final environmental approval and associated mining leases for the project, and is planning to undertake equity raising activities to allow for construction to start in early 2022.
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.