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.
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 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 been granted a mining lease for the Mardie salt and potash project.
The mining lease is valid for an initial 21 years until February 2042, with a further extension term available, subject to Ministerial approval.
“Securing the mining leases is a watershed moment for BCI. It follows four years of studies, surveys, consultation, access agreements and approvals, and evidences our strong relationship across a broad spectrum of stakeholders. Main construction is set to commence imminently following secondary approvals, which keeps our target for first salt sales in the fourth quarter of 2024 on track and in sight,” BCI MD Alwyn Vorster has said.
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.