BCI releases study for $335m Pilbara project

BCI Minerals has released a pre-feasibility study for its Mardie salt and potash project in the Pilbara, with a total capital expenditure of $335 million needed to reach full production.

Released today, the PFS outlines a $248 million investment to produce 3.5 million tonnes per annum of salt, along with an $87 million capital cost for 75,000tpa of fertiliser-grade sulphate of potash.

The cost estimates have an overall level of accuracy between -15 per cent and +25 per cent.

The study also estimates a pre-tax net present value of $335 million and annual earnings before interest, taxes, depreciation and amortisation of about $100 million.

The project is located halfway between Onslow and Karratha, and is within close proximity to a number of other salt projects.

Dampier Salt has projects in Dampier and Port Hedland, while Japanese outfit Mitsui & Co. operates two salt fields in Shark Bay and Onslow.

German multinational K+S Group is also planning to develop the Ashburton salt project near Onslow.

BCI chairman Brian O’Donnell said the project holds significant value.

“Salt and SOP supply and demand projections are attractive, and the board believes this project can deliver significant benefits to all BCI stakeholders and the Pilbara region,” he said

“It is located in a proven salt production region, and the ability to engineer a SOP component during the design phase adds significantly to potential project returns.

“The company looks forward to completion of the DFS, and progressing discussions with potential funding partners and other market participants.”

Shares in BCI were flat at 15 cents each at 1pm AEDT.