PERTH (miningweekly.com) - The Northern Australia Infrastructure Facility (NAIF) has agreed to provide a A$450-million loan to ASX-listed BCI Minerals for its Mardie salt and potash project, in Western Australia

The A$498-million Mardie salt and potash project is expected to produce more than four-million tonnes of high purity salt and 100 000 t/y of sulphate of potash (SOP) fertiliser.

The project was granted 'major project' status by the Australian government in August this year.

The NAIF on Monday said that its loan would help develop ponds, two processing plants, port and other supporting infrastructure at the project.

NAIF CEO Chris Wade said the proposed facilities would provide the opportunity to expand Australia’s chemical and agriculture industries, deliver economic impact to the region of A$2-billion and create at least 450 jobs during construction and 200 operational jobs over a 60 year operating life.

“We are delighted to be able to support the development of the Mardie salt and potash project which by supplying agricultural and chemical industries across Asia offers exciting export opportunities. Locally, the project will also bring significant economic benefits to the Karratha, Dampier and Onslow areas.”

A new transhipment port within the Pilbara Ports Authority controlled Cape Preston West Port area, adjacent to the project, will enable exports from the facility. The port will also be available to others, potentially unlocking further deposits of iron-ore and other minerals in the region.

Mardie will be the first major salt operation developed in Australia in two decades and the project is believed to be the only Australian project producing both salt and SOP in commercial quantities.

BCI MD Alwyn Voster said on Monday that the company was pleased to have received conditional NAIF board approval for the long tenor loan.

“This loan will be the largest NAIF allocation to a Western Australian based company to date and recognises the potential long-term benefits which Mardie will bring to the region, including new port infrastructure available to third party users. Importantly, the loan will also provide significant momentum for BCI to secure the remaining debt and equity funding components required for Mardie’s development.”

The offer of funding, will now be considered by the Minister for Resources, Water and Northern Australia, Keith Pitt.

Subject to project approvals, tenure and funding being secured, BCI is hoping to make a final investment decision on the Mardie project by the second quarter of next year.