Mardie granted major project status

BCI Minerals’ Mardie Salt and Potash project has been awarded major project status, one month after a definitive feasibility study valued the prospective mine at $1.2 billion.

The project, which is thought will produce total revenue of $22 billion over a mine life of more than 60 years, will now receive support from the major projects facilitation agency in the form of coordinating and fast-tracking approvals.

Commenting on the news this morning, BCI managing director Alwyn Vorster said the federal government’s recognition of the project supports the company’s view that Mardie could be a potential Tier 1 project.

“The development of Mardie will deliver substantial long-term public benefits over a potential operating life of 100 years in the form of significant employment and contracting opportunities, and billions of dollars of royalties and taxes,” Mr Vorster said.

“This support from the federal government will make a meaningful contribution towards Mardie becoming the first large-scale salt project to be developed in Australia in more than 20 years.”

Industry, Science and Technology Minister Karen Andrews said the federal government was pleased to support a project which had the potential to expand Australia’s chemical and agricultural industries.

“Not only will the development create about 450 jobs during construction and 200 jobs over its operating life, it will also support critical supply chains and deliver exciting export opportunities,” Ms Andrews said.

Today's announcement comes one week after BCI's annual report revealed profit shrunk by about 97 per cent this past financial year, partially as a result of ongoing reinvestment into the Mardie project.

No dividends were declared for the previous financial year.

BCI said in July it had signed two non-binding, offtake deals accounting for 100 per cent of the project’s three-year salt production and 75 per cent of its five-year salt of potash production.

The project is slated to begin construction by the middle of 2021, with sales to begin throughout 2024 and 2025.

BCI was trading at $0.28/share at 4pm AEST.