BCI Minerals has achieved another key milestone en route to developing its Mardie salt and potash project in Western Australia.
After BCI received environmental approval from the Federal Government in September, the company has now clinched financial close for a $981 million syndicated facility agreement (SFA) from a range of lenders.
The likes of the Northern Australia Infrastructure Facility, Export Finance Australia, Export Development Canada, Westpac, and Industrial and Commercial Bank of China Limited are financially backing Mardie’s salt-first project.
BCI is targeting the first drawdown from the debt facility in the third quarter of the 2024–25 financial year (FY25), which will be drawn from $830 million of construction loan facilities. The company must satisfy various conditions before it can draw from the debt facility, including the signing of additional offtake agreements.
BCI also has access to $70 million of bank guarantees and $81 million of potential cost overruns.
Mines don’t often receive the backing of commercial banks, so for BCI to receive support from Westpac is significant.
Westpac is the sole sustainability structurer of a $331 million, seven-year commercial loan, which follows on from the Mardie project receiving Green Loan certification in recognition of its environmental, social and governance credentials.
With more than 50 per cent of Mardie’s salt-first component constructed, BCI is targeting first salt on ship in FY27.
“Reaching financial close on the syndicated facility agreement is an important milestone for BCI Minerals for the salt-first component of the Mardie project,” BCI managing director David Boshoff said.
“With key achievements including the commencement of operations, securing binding offtake agreements and signing the CSL transhipment contract, we are continuing to execute our plan with precision and building confidence with our stakeholders.”
BCI has signed a binding three-year offtake agreement with Indonesian company PT Chandra Asri Pacific Tbk, with an option for three more years.
BCI has also entered into an offtake term sheet with Japanese trading house Itochu Corporation as well as a non-binding memorandum of understanding (MoU) with PT Mineral Industri Indonesia that could involve the offtake of up to one million tonnes per annum of salt.
Upon receiving Federal Government approval last month, Boshoff said Mardie would be Australia’s largest solar salt project and the third largest globally.
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