The 100% owned Mardie Salt Project is located on the coast in the West Pilbara region, approximately 50km south-west of BCI’s proposed Cape Preston East Port.
The Mardie Salt Project is favourably located in Australia’s major solar salt producing region and presents the key prerequisites for a solar salt operation, being:
- Access to natural channels feeding a brine source (seawater) to the project area;
- A hot dry and/or windy climate with a predictable dry season; and
- An area of flat land with low permeability that is suitable for the construction of evaporation ponds.
BCI has completed a positive Scoping Study on the Mardie Salt Project. Key outcomes and metrics from the Scoping Study are set out below, highlighting the potential value of the Mardie Salt Project.
- Production of 3.0-3.5Mtpa of high purity industrial-grade sodium chloride salt from seawater via a solar evaporation, crystallisation and raw salt purification;
- Operating life of 20 years. However, given the input resource is seawater, the Mardie Salt Project could have a materially longer life with an appropriate sustaining capital model.
- Export of salt via BCI’s proposed Cape Preston East Port;
- Estimated capital costs of A$225-255M and estimated operating costs of A$19-21/t FOB; and
- Pre-tax NPV10 of A$290-380M, pre-tax IRR of 25-27% and EBITDA of A$80-100M per annum.
For further details on the Scoping Study, refer BCI’s announcement dated 18 July 2017.
BCI has commenced a Pre-feasibility Study on the Mardie Salt Project, which is due to be completed by March 2018.
BCI’s strategy for the Mardie Salt Project is to secure a partner following completion of the Pre-Feasibility Study, to co-fund Feasibility Study costs and construction costs.