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.

Mardie will, ultimately, include a 100 km² evaporation pond and crystalliser system, two processing plants and a new export facility.

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 results of BCI’s design and cost review, completed in June 2023, have resulted in an improved net present value of A$2.6-billion, compared with the A$1.5-billion estimated at the time of the final investment decision.

Capital Expenditure
The results of BCI’s design and cost review, completed in June 2023, has resulted in an updated cost estimate for Mardie, to A$1.62-billion, with a base estimate of A$1.42-billion and a contingency of A$208-million.

Planned Start/End Date
Construction at Mardie started in February 2022.

The timing of the first salt on ship and first SoP on ship have been delayed, with first salt on ship now targeted for mid-2026 and SoP for mid-2027, instead of the initial target of the first quarter of 2024 and the first quarter of 2026 respectively.

Latest Developments
BCI Minerals has received credit approvals for a further A$150-million of project finance for its Mardie salt project from two commercial bank debt providers.

The latest credit approval is in addition to the A$650-million of credit approvals received in August from the Northern Australia Infrastructure Facility (NAIF) and Export Finance Australia (EFA).

Commercial bank funding is proposed to include a A$180-million, seven-year construction facility, an A$81-million cost overrun facility, and a A$70-million bank guarantee facility for bonds required under construction or operating contracts.

Lending approvals from the two commercial banks, for the minimum of A$150-million, will provide part of these requirements.

BCI flagged a A$500-million cost blow-out earlier this year at Mardie, while warning of delays to first production.

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.