BCI Minerals Limited (ASX: BCI) ('BCI' or the 'Company') is pleased to confirm contract awards during Q1 2021 to Western Australian companies totalling approximately $90 million for its Mardie Salt & Potash Project.
The initial earthworks contract has been awarded to WBHO Infrastructure, a contractor with a long history of project delivery excellence in large civil construction projects and a strong presence in Western Australia. The contract includes initial construction of the large-scale trial pond scheduled to commence in April, as well as construction of evaporation ponds 1 and 2, on terms aligned with DFS budget assumptions, once Final Investment Decision (FID) is achieved and required tenure and approvals are in place. The total earthworks volume in this scope is approximately 800,000 cubic metres over an area of 24 square kilometres.
Engenium, the successful tenderer for the PMC role, is a Western Australian company with offices in Perth and Karratha. Engenium was selected for its local and experienced team, proven track record in project delivery and construction management, excellent health and safety record and pricing within the DFS budget. The PMC is an important contract in the overall execution of the Mardie Project which will see Engenium manage the construction program through the provision of people and systems as an extension of the BCI owners' team. Engagement of Engenium on a staged basis will also support BCI to achieve construction-ready status ahead of main construction commencing in 2H 2021.
Various smaller contracts covering accommodation village expansion, minor earthworks, site surveys, communications, water supply, fuel storage and supply as well as the Karratha office fit-out have been awarded this calendar year. These works are all underway with Pilbara-based contractors expanding Mardie village and fitting-out the Karratha office and local indigenous companies carrying out aboriginal heritage surveys and minor earthworks.
Commenting on the contracts, BCI's Managing Director, Alwyn Vorster said: 'The award of the initial earthworks contract in particular represents a key milestone in BCI's progress toward main construction and demonstrates Board confidence in Mardie's development pathway. These contracts will be initially funded from BCI's healthy cash balance and strong Iron Valley royalty income.'
Contact:
Rebecca Thompson
Tel: +61 416 079 329
Email: rebecca.thompson@bciminerals.com.au
ABOUT BCI MINERALS
BCI Minerals Limited (ASX:BCI) is an Australian-based company that is developing a salt and potash business supported by iron ore royalty earnings. BCI is rapidly advancing its 100% owned Mardie Salt & Potash Project, a potential Tier 1 project located on the West Pilbara coast in the centre of Australia's key salt production region.
Mardie aims to produce 4.4Mtpa of high-purity salt (>99.5% NaCl) and 120ktpa of sulphate of potash (SOP) (>52% K2O) via solar evaporation of seawater.1 Using an inexhaustible seawater resource and a production process driven mainly by natural solar and wind energy, Mardie is a sustainable opportunity to supply the salt and potash growth markets in Asia over many decades. There is potential to optimise and expand the project beyond currently planned production levels. With a Final Investment Decision targeted in Q2 2021 and construction start by mid-2021, first salt sales can be achieved by mid-2024 and first SOP sales by mid2025.
BCI receives quarterly royalty earnings from Iron Valley, an iron ore mine located in the Central Pilbara region of Western Australia which is operated by Mineral Resources Limited (ASX:MIN). BCI's EBITDA from Iron Valley was A$23.0M for FY20 and A$17.1M for H1 FY21.
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