Name of the Project
Mardie salt and potash project.

Location
The project is located on the north-west coast of Western Australia.

Project Owner/s
BCI Minerals.

Project Description
An optimised prefeasibility study (PFS) on the project has improved the project’s economics, compared with the June 2018 PFS.

The optimised PFS envisages the production of salt through the solar evaporation of seawater, crystallisation and dry harvesting of raw salt, which are then processed to produce a high-purity product at a 99.7% sodium chloride dry basis.

The remaining liquor (bitterns) extracted from the primary salt crystalliser ponds will be subject to further crystallisation, harvesting and processing to produce sulphate of potash (SoP) at 51% potassium oxide.

The project’s salt production targets have increased from 3.5-million tonnes in the June 2018 PFS to four-million tonnes in the optimised PFS.

SoP production has increased from 75 000 t/y in the June 2018 PFS to 100 000 t/y in the optimised PFS.

BCI and independent experts have increased the project footprint layout and optimised the pond and crystalliser mass balance to establish an operational case capable of producing four-million tonnes a year of salt and 110 000 t/y of SoP.

To facilitate the higher production, 147 Gℓ/y of seawater containing 4.7-million tonnes of sodium chloride and 150 000 t of SoP equivalent, is flowed through a total concentrator pond footprint of 79 km² and crystalliser footprint of 20 km2.

This represents an increase of 15 Gℓ of seawater, 9 km² of concentrator ponds and 3 km2 of crystallisers.

The June 2018 PFS envisaged salt being trucked about 70 km by private haul road to a new port at Cape Preston East, which was assumed to be developed and operational by the time it is required by Mardie.

The PFS optimisation study case adopts the approach of BCI developing a new port facility at the Mardie site to export salt and SoP, a concept which the Minister for Ports approved.

This will eliminate road haulage costs and make Mardie’s development case-independent and not reliant on the prior development of Cape Preston East or high-cost access to the Dampier general cargo facility.

The Mardie Port will comprise a trestle jetty with a conveyor (or light rail) and road, which traverses the inter-tidal zone for about 3 km before extending into the ocean for a further 3.5 km to reach shiploading infrastructure and a transhipment berth pocket.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The optimised PFS estimates a pretax net present value, at a 10% discount rate, of A$560-million, compared with A$335-million in the June 2018 PFS, and an internal rate of return of 20.3%, compared with 20.1% in the June 2018 PFS. The payback period of five years has remained the same.

Capital Expenditure
Capital expenditure has increased from A$335-million in the June 2018 PFS to A$498-million, allowing for increased production and the development of a port at Mardie.

Planned Start/End Date
Not stated.

Latest Developments
BCI Minerals has secured a new tenement area adjacent to its Mardie salt and potash project.

BCI Minerals will pay owner Leichhardt Industrials A$3.5-million in cash on the completion of the tenement right acquisition.

For 12 months, the junior company will have a call option, and Leichhardt will have a put option on rights to the remaining northern tenement area. BCI will pay a further A$2.5-million in cash to Leichhardt upon the option being exercised by either party.

A set of documents and reports pertaining to the environmental and technical work undertaken by BCI in the area of the proposed Cape Preston East port will be transferred to Leichhart at the completion of the transaction.

BCI has told shareholders that the new tenement will add 112 km2 of coastal tenements to the Mardi project, including a significant area of mudflats suitable for evaporation ponds and crystallisers. This will provide optionality for future layout optimisation and expansion to more than 5.5-million tonnes of salt and 150 000 t/y of SoP, making Mardie the biggest salt operation in Australia and one of the biggest evaporation salt operations globally.

BCI is continuing to progress designs and approvals for the current project footprint, with the definitive feasibility study on schedule for completion in June this year.

Key Contracts and Suppliers
Salt Partners (salt processing and purification, salt purification plant design); K-UTEC Salt Technologies (SoP production, including bitterns evaporation and crystallisation flows, SoP processing plant design); K Wellisch & Associates (seawater evaporation and crystallisation flows, concentrator and crystalliser pond design); Roskill Information Services (salt market and pricing information); Integer Research (SoP market and pricing information); O2 Marine (environmental: Benthic communities and habitat surveys, marine fauna and surface hydrology); Stantec (environmental: mangal, algal matt and acid sulphate soil studies); RPS Group (environmental: storm surge and surface hydrology analysis); Phoenix Environmental Sciences (environmental: flora and fauna surveys); Pendoley Environmental (environmental: marine turtle survey and assessment); Land and Marine Geological Services (strategic planning and analysis of geotechnical testwork); Amberley Management (earthworks construction methodology and cost estimates); Drake-Brockman Geoinfo (geological photo interpretation for identification of construction materials); Cardno (port and civil design); Braemar Shipping Services, Clarkson, Jebsen (freight rate estimates); and Dalesford (review of capital expenditure and operational expenditure estimates).

Contact Details for Project Information
BCI Minerals, tel +61 8 6311 3400 or email info@bciminerals.com.au.