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BCI lines up final

condiments for Mardie

salt development

CI Minerals Ltd is on the verge of hitting spent first, followed by the NAIF facility drawn
Bthe start button for construction of its $1.2 to 50% and then the commercial bank facility,
billion Mardie salt-potash project on the Pil- the EFA facility and the remaining balance of
bara coast. the NAIF facility, all on a pro-rata basis. Alwyn Vorster
As this edition went to print, BCI confirmed All facilities remain conditional on formal
it had received approvals for $740 million of documentation, securing required tenure Mardie in a calculated move which Vorster
project finance debt, including an enhanced and approvals, equity funding, offtake ar- said would ensure the company only needed
$490 million loan facility with 15-year tenor rangements, and other customary conditions to finalise the equity component of its overall
from the Northern Australia Infrastructure Fa- precedent are associated with the loans. project financing package post the final in-
cility (NAIF), subject to conditions. BCI managing director Alwyn Vorster said vestment decision from the BCI board.
The debt finance package also includes a the $740 million debt finance package rep- “Some companies make FID and then
10-year $110 million loan facility with Export resented a key milestone for the project and take two years before they actually move to
Credit Australia (EFA) and credit approval would underpin the “pending consideration” project development, so in our case, we hope
from two leading commercial banks for $140 by the company’s board to progress to a final to position the FID as such that it is really the
million to put towards construction, along with investment decision on Mardie. final mandate for the board and manage-
$170 million in facilities for cost overrun and “The participation of government funders ment to raise the equity needed to build the
guarantee requirements. such as NAIF and EFA, together with the project,” he said.
BCI now only needs to finalise the $460 confidence demonstrated by the lead com- “It may be that we have another 4-6 weeks
million balance, which is expected to come mercial banks in the technical, economic and after that to get clarity on a number of points,
from a combination of existing cash, ongo- green credentials of the project is a strong but we hope that management is in a posi-
ing royalty earnings from the Iron Valley op- validation of Mardie’s potential,” Vorster said. tion to take the first FID proposal to the board
erations, potential corporate debt and new “BCI is now well positioned to achieve FID, by late June. In order for us to do that, we
equity sources, for the company’s board to raise the required new equity and subject to have a checklist of 15 items, including ap-
approve a final investment decision on to final approvals, commence main construc- provals, tenure, construction contracts, and
construct the proposed 5.35 mtpa salt and tion.” the strengthening of the team which we are
140,000 tpa sulphate-of-potash operation at Mardie is poised to become Australia’s first working our way through now.”
Mardie, about 100km south-west of Dampier. new major salt operation in more than two Using an inexhaustible seawater resource
The NAIF facility has been upsized from decades and Vorster told Paydirt earlier this and a production process driven mainly by
the $450 million approved last December in year the project was likely to be just the start- natural solar and wind energy, Mardie is set
recognition of the larger project as per BCI’s ing point for the industrial minerals-focused to become a key supplier of both industrial
optimised feasibility study which envisages company. salt and sulphate-of-potash to growth mar-
an operational life at Mardie of at least 60 “We are now more positive than ever be- kets in Asia over many decades.
years and more than $8 billion in corporate fore BCI wants to become a globally signifi- Aiding BCI’s bid to finalise the funding
taxes, $800 million in state royalties and cant player in the industrial minerals space,” package for Mardie is ongoing royalty pay-
$200 million in Native Title payments. he said back in June. “Mardie is only the start. ments from the Mineral Resources Ltd-
BCI expects total funds to be committed We see many other opportunities to actually operated Iron Valley mine, which delivered
over an estimated five-year period to com- become a global industrial minerals player.” EBITDA of $69.5 million to the company in
plete construction, start operation and pro- At the time, primary construction works FY2021. Financial results from the Septem-
gressively ramp up production and sales. such as the first evaporation pond and the ber quarter were due at the time of print.
The company’s equity contributions will be main seawater pump station had begun at

BCi is approaching a final
investment decision on its Mardie
salt-potash project, about 100km
south-west of Dampier

aUSTRaLIa’S PaYDIRT NOVeMBeR 2021 Page 19