BCI Secures $981M Debt Facility as Mardie Salt Project Hits 56% Build Progress
BCI Minerals reports robust progress in its Mardie Salt and Potash Project, achieving financial close on a $981 million debt facility and advancing construction beyond the halfway mark. The company maintains a strong focus on sustainability and safety as it targets first salt shipment in Q2 FY27.
- Financial close secured on $981 million syndicated debt facility
- Construction of salt-first phase over 56% complete
- First salt shipment targeted for Q2 FY27
- 62% of first three years of production under binding offtake agreements
- Sustainability initiatives include invasive species removal and updated groundwater monitoring
Financial Milestone Achieved
BCI Minerals Ltd (ASX: BCI) has reached a significant milestone with the financial close of a $981 million syndicated project debt facility, underpinning the salt-first phase of its Mardie Salt and Potash Project. This financing package, secured from a consortium including Northern Australia Infrastructure Facility, Export Finance Australia, and major banks, provides the capital foundation for advancing construction and operational ramp-up.
The company announced lender approval for the first drawdown notice in January 2025, with funds expected to be received in February. This follows the execution of binding offtake agreements covering 62% of forecast production over the initial three years, securing market access primarily across key Asian markets such as Japan, Korea, Taiwan, China, and Indonesia.
Construction Progress and Operational Ramp-Up
Construction of the salt component of the Mardie Project has surpassed the halfway mark, with 56% completion reported at the end of December 2024. Key infrastructure milestones include the completion of all transfer stations, wet commissioning of transfer station 2/3, and 97% completion of ponds 6 to 9 seawalls. The marine package, critical for export logistics, is 76% complete, highlighted by the arrival of a jack-up barge to install the jetty head.
Operationally, the primary seawater intake station pumped approximately 48 gigalitres of seawater during the quarter, supporting pond filling activities. The company continues to target first salt shipment in the second quarter of fiscal year 2027, positioning Mardie as a future major supplier of high-purity industrial salt globally.
Sustainability and Safety at the Forefront
BCI Minerals maintains a strong commitment to health, safety, and environmental stewardship. The Total Recordable Injury Frequency Rate (TRIFR) improved to 4.4, reflecting ongoing efforts in fatality prevention and leadership training. Environmentally, the company has removed 716 hectares of mesquite, a non-native invasive species, bringing total cleared area to 1,249 hectares within the project footprint.
Groundwater monitoring continues to be a priority, with real-time data informing an updated Groundwater Monitoring and Management Plan submitted for regulatory approval. While some seepage was detected during initial pond filling, it has been reported to regulators with no significant environmental impact observed, and natural pond floor sealing is expected to mitigate further seepage.
Market Context and Outlook
Salt pricing in key Asian markets remained steady during the December quarter, with contractual renewals underway for new pricing and volume commitments starting January 2025. BCI’s binding offtake agreements and strategic positioning in Asia provide a solid foundation amid stable market conditions.
Managing Director David Boshoff expressed confidence in the project’s trajectory, highlighting the team’s efforts in achieving financial close and advancing construction milestones. As BCI moves closer to operational ramp-up, the company’s integrated approach to project delivery and sustainability sets a promising stage for future growth.
Bottom Line?
With financial close secured and construction advancing steadily, BCI Minerals is poised to transform the Mardie Project into a leading salt supplier by 2027.
Questions in the middle?
- How will evolving salt market prices in Asia impact BCI’s revenue forecasts?
- What are the potential risks if regulatory approvals for the updated groundwater plan face delays?
- How will the company manage cost overruns as construction progresses towards completion?
