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
The first salt sales are expected by the third quarter of 2024 and the first SoP sales by the fourth quarter of 2025.
Latest Developments
The Western Australian Minister of Environment has determined that recommendations made by the state’s Environmental Protection Authority (EPA) on the Mardie salt and potash project should be amended.
The EPA in July this year approved BCI’s plans to develop the Mardie project, making 19 recommendations, including conditions for the construction and operation of the project.
BCI has said that, in responding to appeals to the EPA assessment, Environment Minister Amber-Jade Sanderson had varied the EPA’s recommended conditions to better reflect the intended outcome of the EPA’s assessment, and improve transparency and confidence in the research offset conditions.
“BCI made provisions for the additional approval conditions in the Mardie financial models and management plans, and the appeals determination provides additional confidence that Mardie will receive primary approval in 2021,” BCI MD Alwyn Vorster has said.
The Ministerial determination on the appeals is not a final decision on the Mardie project.
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.