PERTH (miningweekly.com) – Junior BCI Minerals has taken a final investment decision (FID) on its Mardie salt and potash project, in Western Australia, just days after securing A$740-million in debt funding for the project.

The ASX-listed company on Thursday said that subject to final approvals, main construction for the Mardie project is targeted for early 2022.

“The FID milestone comes ten years after Mardie tenements were acquired for A$225 000 by BCI’s predecessor, Iron Ore Holdings. It is an endorsement from the board for the results delivered by the BCI team and provides a mandate to finalise funding and subject to final statutory approvals, progress to main construction,” said BCI MD Alwyn Vorster.

“We are confident that with the ongoing support of our board, shareholders and other stakeholders, BCI is on the cusp of creating a unique, sustainable project in Western Australia.”

The project will require a capital spend of about A$1.2-billion to support a production of 5.35-million tonne a year of salt and 140 000 t/y of sulphate of potash (SoP).

The project is anticipated to produce about 5.35-million tonnes a year of salt and about 140 000 t/y SoP, over a projected mine life of at least 60 years.

The FID will see Mardie become 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.

Mardie’s sustainable production of agricultural fertiliser from salt waste, pollution prevention and materials recovery and re-use were key criteria in obtaining Green Commercial Loan Facilities as part of its A$740-million project finance debt package, Vorster said.

“The FID reflects our collective confidence that the project funding will be finalised in coming weeks, based on the expected approvals pathway and indications of interest received from existing shareholders, including Wroxby, and potential new shareholders. The Mardie investment case is compelling with its large scale, low cost, and long operating life representing key attributes of a world class sustainable, multi-generational tier 1 asset,” said BCI nonexecutive chairperson Brian O’Donnell.

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.