Name of the Project
Mardie salt and potash project.

Location
The project is located on the Pilbara coast of Western Australia.

Project Owner/s
BCI Minerals.

Project Description
A definitive feasibility study (DFS) has confirmed that the project could become a globally significant Tier 1 project.

At Mardie, an inexhaustible seawater resource will be concentrated through solar and wind evaporation to sustainably produce 4.4-million tonnes a year of high-purity sodium chloride salt and 120 000 t/y of sulphate of potash (SoP) to supply the growing chemical and agricultural industries in Asia over an operating life of at least 60 years.

The project includes nine evaporation ponds, 34 crystallisers and 18 SoP crystallisers, a salt plant and an SoP plant.

BCI will also consider the relocation of crystallisers to the recently acquired tenements north of Mardie, which will allow for increased production and lower operating costs.

The new tenements also offer a sufficient area for additional evaporation ponds, which could increase production capacity to six-million tonnes a year of salt and 160 000 t/y of SoP production, making Mardie one of the largest solar evaporation operations globally.

Potential Job Creation
During construction, 470 jobs are expected to be created, while an estimated 190 jobs are expected to be created during operations.

Net Present Value/Internal Rate of Return
The project has an estimated ungeared net present value, at a 7% discount rate, of A$1.2-billion and an internal rate of return of 15.3%.

Capital Expenditure
Capital costs are estimated at A$779-million.

Planned Start/End Date
The development schedule is targeting a final investment decision in the first quarter of 2021, with construction expected to start in the second quarter of 2021.

First salt sales are expected by mid-2024, and first SoP sales by mid-2025.

Latest Developments
BCI Minerals has announced a A$48-million capital raise to allow for the start of early construction at the Mardie salt and potash project and to order long-lead items.

The junior company is undertaking a one-for-two fully underwritten, accelerated nonrenounceable entitlement offer at 24c each. The offer price represents an 8% discount to the company’s 15-day volume weighted average share price.

The offer will entail a retail and institutional component.

The institutional offer will open on September 14, while the retail component will open on September 18 and close on October 6.

BCI has said that shareholder Wroxby, which holds a 29% interest in the company, has committed to taking up its full pro rata entitlement of about A$14-million, and has provided subunderwriting for up to another A$19.3-million, of which 70% cover any shortfall of the offer.

“Funds from the entitlement offer will enable BCI to commence early construction work and order long-lead items, which will result in an accelerated development schedule for the Mardie salt and potash project,” said MD Alwyn Vorster.

“We are pleased with the level of support received from existing shareholders, providing further confidence for the larger funding task ahead of BCI in 2021.”

Key Contracts, Suppliers and Consultants
The DFS was managed by BCI, with support from GR Engineering Services (DFS lead engineer), and additional support from Worley, CMW Geosciences, Preston Consulting, RPS, Roskill, Argus Consulting, Braemar ACM Shipbroking and KPMG, besides others.

Contact Details for Project Information
BCI Minerals, tel +61 8 6311 3400 or email info@bciminerals.com.au.