PERTH (miningweekly.com) – Potash developer BCI Minerals has received credit approvals for a further A$150-million of project finance for its Mardie salt project, in Western Australia, from two commercial bank debt providers.
The latest credit approval for a minimum of A$150-million in project finance was in addition to the A$650-million of credit approvals received last month from the Northern Australia Infrastructure Facility (NAIF) and Export Finance Australia (EFA).
“Project finance is gaining momentum, with ongoing support from key lenders indicating strong confidence in BCI’s Mardie project. The participation of two leading commercial banks, alongside NAIF and EFA, brings us closer to completing the project finance debt package and acquiring the funding needed to complete the project,” said BCI Minerals MD David Boshoff.
Commercial bank funding is proposed to include a A$180-million, seven-year construction facility, an A$81-million cost overrun facility, and a A$70-million bank guarantee facility for bonds required under construction or operating contracts.
BCI said on Monday that the lending approvals from the two commercial banks, for the minimum of A$150-million, would provide part of these requirements.
BCI earlier this year flagged a A$500-million cost blow-out at Mardie, while also warning of delays to first production.
The project is now estimated to cost A$1.62-billion, while first salt production is anticipated mid-2026 and sulphate of potash in mid-2027, instead of the initial target of the first quarter of 2024 and the first quarter of 2026 respectively.