BCI Minerals Advances Mardie to Production with Salt Crystallisation and Strong Funding

Salt Crystallisation Marks Transition to Production

BCI Minerals (ASX:BCI) has entered a new phase at its Mardie Salt Operation and Potash Project in Western Australia, with salt crystallisation now underway and 49,000 tonnes of salt inventory formed. This milestone signals the company’s shift from developer to producer, setting the stage for first salt shipment expected in early 2027, weather permitting. The crystallisers, now containing high-density brine, are producing salt pavements that will underpin the first harvest.

Construction Progress and Financial Discipline

Construction at Mardie has reached 85% completion, with $1.185 billion spent to date against a $1.443 billion salt-first capital budget. The estimated cost to complete has been revised down from $508 million to $258 million during FY26, reflecting effective project management and cost control. The marine infrastructure, including the jetty head and ship loader, is 95% complete, and dredging of the berth pocket and navigation channel commenced in April 2026 following regulatory approvals. BCI maintains a strong liquidity position with $423 million in available funding and $587 million drawn from syndicated debt facilities supported by government and commercial lenders.

Offtake Agreements and Market Positioning

BCI has secured three binding offtake agreements covering 62% of forecast salt production for the first three years, targeting key Asian markets including China, Japan, Korea, Indonesia, and Taiwan. Pricing under these agreements is indexed to prevailing market conditions, providing exposure to anticipated salt price appreciation. The company is actively engaging with customers on 2027 contract negotiations, dispatching salt samples that meet specifications and leveraging its strategic port location to offer competitive freight advantages.

Port Infrastructure and Logistics Enhancements

The purpose-built Mardie Port, designed to handle up to 20 million tonnes per annum, is nearing completion with significant dredging underway. This infrastructure supports the export of Mardie’s salt and offers surplus capacity that BCI is exploring to monetise through additional product exports. Complementing the port, construction of the Mardie Spirit transhipment vessel commenced in 2026, designed to handle nearly six million tonnes annually and scheduled for delivery in 2027. In the interim, the Osprey vessel conversion will facilitate initial shipments.

Sulphate of Potash Development Advances

BCI is progressing its sulphate of potash (SOP) opportunity, a premium fertiliser produced as a byproduct of salt operations. The kainite-type mixed salts (KTMS) trial crystallisers achieved steady-state operation during FY26, supporting the technical validation of SOP production. The front-end engineering and design (FEED) study for the SOP pilot plant has been awarded, with a final investment decision planned for August 2026 and construction contract expected in the following quarter. This staged approach aims to de-risk SOP development before committing to full-scale production.

Sustainability and Community Engagement

BCI’s sustainability efforts remain integral to its operations, with all FY26 targets achieved. The company enhanced biodiversity monitoring, strengthened water management, and progressed climate adaptation readiness in preparation for upcoming regulatory reporting requirements. Partnerships with Traditional Owners, notably the Wirrawandi Aboriginal Corporation, deepened through capacity-building agreements and the creation of an Indigenous Ranger position. Community investment included a $42 million contribution to Pilbara and Indigenous businesses, doubling support for local scholarships and sponsoring grassroots sport initiatives.

Financial Results Reflect Transition Phase

For the year ended 30 June 2026, BCI reported a profit after tax of $30.8 million, driven primarily by recognition of deferred tax assets and gains from the finalisation of the Iron Valley divestment. Operating EBITDA remained negative at $43.8 million, reflecting ongoing investment in construction and operational readiness ahead of revenue generation. The company’s balance sheet remains robust, with net assets of $834.1 million and no material breaches of financial covenants.