BCI Minerals has become the latest potash hopeful to receive a funding boost, as the Australian Government looks breathe life into the country’s battling potash sector.
BCI has secured $650 million in debt funding from the Government to finance its $1.629 billion Mardie salt and potash project, located alongside the Pilbara coast in WA.
Potash has had a spotted history in Australia, with two major projects proving unsuccessful.
Potash hopeful Kalium Lakes, which had secured $72.6 million in funding from the Northern Australia Infrastructure Facility (NAIF), recently went into administration.
This was preceded by the 2021 collapse of the ASX-listed Salt Lake Potash, which happened despite $US47 million ($73 million) in Government funding.
Mardie project
BCI Minerals’ new finance package for the Mardie project includes $650 million in funding from the Australian Government, split between $490 million from NAIF for a 15-year facility and $160 million from Export Finance Australia (EFA) for an 11-year facility.
The package also includes commercial Bank funding, which is proposed to include a $180 million, seven-year construction facility, an $81 million cost overrun facility, and a $70 million bank guarantee facility for bonds required under construction or operating contracts.
BCI expects to be in a position to announce credit approvals from two leading commercial banks for a minimum of $150 million in the near future.
According to BCI, the Mardie project will be the first major salt project developed in Australia in two decades and the only Australian operation to produce commercially saleable salt.
“This renewed support for funding recognises the long term benefits the project will bring to the region, Western Australia, and Australia over its 60-plus-year life,” the company told the market.
“This includes roughly $8 billion of corporate taxes, $800 million in state royalties, $200 million of native title payments, global exports, multi-user export infrastructure, local jobs and contracts and Indigenous engagement.
The majority of Mardie’s industrial grade salt production will be exported to markets in Japan, South Korea, China, Taiwan, Indonesia and other Asian countries.
Last year, first shipment from the Mardie project was delayed to 2026, with with the company citing significant cost increases. Securing funding solutions marks a significant step on the path to production at Mardie.