BCI secures almost $1bn debt for salt project

BCI Minerals has secured a syndicated facility agreement for its Mardie salt project near Karratha, with nearly $1 billion locked in for the under-construction asset.

The ASX-listed project developer announced it had executed a syndicated facility deal with the multiple lenders, which includes the $490 million loan from the Northern Australia Infrastructure Facility.

The previously announced major loan from NAIF is the second largest sum lent to a project developer, following the $610 million to Genex Power for the Kidston hydro energy storage project in Queensland. 

BCI has also tapped Export Finance Australia, Export Development Canada, Westpac Bank and Industrial and Commercial Bank of China for the nearly $980 million worth of debt finance.  

The debt finance for the sulphate of potash plant is expected to progress during 2024, after locking down cost development and design. 

BCI expects first drawdown of debt in mid-2024. 

It comes after BCI undertook a major review of its flagship project in June, which resulted in forecast project costs blowing out from $1 billion to $1.6 billion.

“Signing of the syndicated facility agreement is a significant achievement in securing the funding needed to deliver BCI’s Mardie Project,” BCI managing director David Boshoff said.

“The ongoing support show by this diversified lender group indicates strong confidence and trust in the project over the long term.”

KPMG and Herbert Smith Freehills are advising BCI.