PERTH (miningweekly.com) – A definitive feasibility study (DFS) on the Mardie salt and potash project, in Western Australia, has confirmed that the project could become a globally significant Tier 1 project.

The DFS, released by owner BCI Minerals on Wednesday, noted that the project could produce 4.4-million tonnes a year of high purity salt and 120 000 t/y of premium sulphate of potash (SoP) fertilizer.

The project is expected to have a minimum operating life of 60 years, delivering annual earnings before interest, taxes, depreciation and amortization of A$197-million, total revenue of A$22-billion and a pre-tax net present value of A$1.19-billion.

The DFS estimated a capital cost of A$580-million to develop the project, which includes all production and port infrastructure, while salt all-in sustaining costs (AISC) have been estimated at A$20.30/t and SoP AISC at A$310/t.

“The DFS delivered positive outcomes in all key project areas and indicates Mardie is technically robust and financially attractive with a potential net present value of more than a billion dollars,” said BCI MD Alwyn Vorster.

“An investment of A$20-million has been made over the past 18 months to deliver the high quality DFS and we will continue to de-risk and add value to the project over the next few months. This should further increase lender and investor confidence, supporting funding solutions.”

Chairperson Brian O’Donnell said that the completion of the DFS gave BCI the green light to progress towards a final investment decision, pointing out that the company had some A$42-million cash at hand and was well positioned to reach a final investment decision without the need for new capital.

A final investment decision is targeted for the first quarter of 2021, with first salt sales targeted by mid-2024, and first SoP sales by mid-2025.

BCI has 13 non-binding salt offtake memoranda of understanding (MoUs) and two SoP non-binding offtake MoUs in place for the Mardie project, accounting for 100% of the project’s three-year salt production and 75% of its five-year SoP production.