BCI Minerals has reached 85% construction completion at its Mardie Salt Operation and Potash Project, with salt crystallisation commenced and 49,000 tonnes produced. The project remains fully funded and on budget, progressing towards first salt shipment in early 2027, weather permitting.
- 85% construction completion with $1.185 billion spent
- Salt crystallisation started, 49kt produced by June
- Dredging and port works progressing on schedule
- Syndicated debt drawn to $586.6 million
- SOP pilot plant FEED awarded, construction contract pending
Salt Crystallisation Milestone Signals Operational Progress
BCI Minerals Ltd (ASX:BCI) has reported significant advancement at its Mardie Salt Operation and Potash Project, with salt crystallisation now underway and 49,000 tonnes of crystallised salt produced by the end of June. This marks a key operational milestone as the project transitions from construction to production ramp-up.
The company completed filling the first crystalliser train and commenced filling the second, with six crystalliser cells containing brine as of quarter-end. Salt precipitation in the crystallisers aligns with operational plans, setting the stage for first salt on ship (FSOS) anticipated in early 2027, though timing remains dependent on weather-driven evaporation rates.
Construction Advances with Strong Funding and Cost Control
Construction progress reached 85% completion by 30 June 2026, excluding the crystalliser lining program which stands at 82%. Cumulative construction expenditure totalled $1.185 billion, with an estimated $258 million remaining to complete the project. The salt wash plant has surpassed 90% concrete completion, with structural steel erection underway and major mechanical equipment installed.
BCI drew an additional $89.8 million from its syndicated debt facility during the quarter, bringing total drawn debt to $586.6 million and total facility utilisation including bank guarantees to $635.5 million. The project remains fully funded and within budget, with 94% of project expenditure locked in, significantly de-risking construction costs.
Port and Logistics Infrastructure Progressing
At Mardie Port, jetty construction reached 95% completion. Dredging commenced with over 100,000 cubic metres excavated, representing more than 30% of the design volume, on track for completion by early September within the environmental window. Piling works and navigation aids installation are progressing, with berthing piling started in July.
Construction of the Mardie Spirit, a 16,000 DWT self-unloading transhipment vessel critical for export logistics, officially began with a steel-cutting ceremony in May. This vessel will link salt production to industrial customers across Asia, complementing interim transhipment by the converted Osprey vessel.
Sulphate of Potash Pilot Plant Development Advances
The sulphate of potash (SOP) component is progressing with kainite-type mixed salts (KTMS) trial crystallisers operating steadily despite weather disruptions. BCI awarded the SOP pilot plant front-end engineering design (FEED) study to Bluestar Lehigh Engineering Institute Co., Ltd, with construction contracts expected to be awarded in the September quarter. The pilot plant aims to produce around 140,000 tonnes per annum of premium fertiliser, supporting regional agricultural demand.
Health, Safety, and Community Engagement Remain Priorities
BCI maintained a strong safety focus, completing over 480 leadership interactions and 280 critical control verifications, despite one new recordable injury raising the total recordable injury frequency rate to 4.4. The company continues to strengthen frontline safety leadership and embed risk management controls.
Environmental monitoring programs involving Traditional Owners progressed, including mangrove and marine quality assessments. BCI also advanced Indigenous employment initiatives with the creation of a full-time Ranger role in partnership with the Wirrawandi Aboriginal Corporation.
Market Outlook Supports Mardie’s Strategic Position
Demand for industrial salt in Asia is expected to grow with new chlor alkali plants commissioning over the next three to five years, generating an estimated 10 million tonnes per annum of surplus demand. This demand is linked to expanding semiconductor manufacturing, critical minerals processing, and clean technology supply chains.
Meanwhile, the SOP market remains stable with regional demand from high-value horticulture and plantation crops underpinning pricing. Mardie’s SOP production is positioned to support this growth trajectory.
Bottom Line?
BCI’s Mardie project is nearing operational readiness with crystallisation underway and strong financial backing, but weather-dependent evaporation rates will dictate the exact timing of first shipments.
Questions in the middle?
- How will seasonal weather variability impact the timing and volume of first salt shipments?
- What are the risks of cost overruns or delays in completing the crystalliser lining by March 2027?
- How will BCI’s multi-user port strategy influence future export volumes and partnerships?