BCI Minerals has contracted Bluestar Lehigh to build a 150 kg/hr sulphate of potash pilot plant at Mardie, aiming to de-risk commercial SOP production. Commissioning is set for early FY2028 with piloting to span about a year, funded within the existing $1.443 billion Mardie budget.
- Contract awarded for 150 kg/hr SOP pilot plant
- Pilot plant to test Mardie feedstock under site conditions
- Commissioning targeted for early Q2 FY2028
- Pilot funded from existing Mardie capital budget
- Full-scale SOP investment contingent on pilot success
Pilot Plant Contract Marks Key Step in Mardie SOP Development
BCI Minerals (ASX:BCI) has taken a significant stride in its Mardie Salt Operation and Potash Project by awarding a contract to Bluestar Lehigh Engineering Institute Co, Ltd to construct a pilot plant for sulphate of potash (SOP) production. The 150 kg/hr containerised pilot plant will enable continuous, end-to-end testing of Mardie's representative feedstock under actual site operating conditions, a crucial step to validate the potential for commercial-scale SOP output.
BCI’s Managing Director David Boshoff emphasised the pilot plant’s role in reducing technical and process uncertainties, noting it provides realistic data to finalise a robust flowsheet before any full-scale investment decision. The pilot will also assess the value-adding potential of bitterns, positioning Mardie as a possible first Australian site producing both salt and SOP concurrently.
Funding and Project Integration within Mardie Capital Budget
The pilot plant’s construction and commissioning costs will be covered by BCI’s existing debt facilities and form part of the approved A$1.443 billion Mardie capital budget. This approach ensures no impact on the scope or schedule of the ongoing salt operation, which is progressing steadily with salt crystallisation underway and first shipments expected in 2026.
Engineering consultancy eXcellerate, which has supported BCI’s SOP evaluation since 2024, will provide independent oversight across design, risk, procurement, and commissioning phases, adding a layer of scrutiny and expertise to the pilot’s execution.
Timeline Targets Commissioning and Piloting Through FY2028
Representative KTMS feedstock is currently being generated at Mardie via trial crystallisers, with BCI targeting production of approximately 1,000 tonnes in Q2 FY2027. The pilot plant is slated for commissioning at the start of Q2 FY2028, with the piloting phase expected to last around 12 months. This timeline positions BCI to gather comprehensive operational data before deciding on scaling up SOP production.
While SOP offers a premium chloride-free fertiliser option for high-value crops domestically and internationally, any decision to proceed with a full-scale SOP facility remains contingent on successful pilot outcomes, further feasibility studies, and a separate final investment decision.
Strategic Implications for Mardie and BCI’s Diversification
The SOP pilot plant represents a strategic diversification opportunity for Mardie’s earnings base beyond salt production. By leveraging bitterns, a by-product of salt extraction, BCI could establish a vertically integrated operation unique in Australia. This aligns with a broader industry trend to maximise resource utilisation and capture higher-value product streams.
BCI’s methodical, data-driven piloting approach reflects a cautious but forward-looking strategy, balancing project advancement with risk mitigation. The company’s progress on the Mardie salt project, which recently reached 85% construction completion with crystallisation underway, sets a solid foundation for this next phase of SOP development.
Bottom Line?
BCI’s pilot plant contract advances Mardie’s SOP potential while preserving existing project timelines and budgets, setting the stage for a pivotal feasibility phase.
Questions in the middle?
- Will pilot plant data confirm commercial viability for SOP at Mardie?
- How might integrating SOP production impact Mardie’s overall project economics?
- What are the key technical risks that the pilot aims to resolve before full-scale investment?