Join our daily newsletter At The Bell to receive exclusive market insights
- BCI Minerals (BCI) has awarded the $190 million marine structures contract for the Mardie Salt and Potash project to McConnell Dowell Constructors
- The design and construct package is the largest direct capital works contract for the project, with jetty construction is scheduled to commence in Q4 2022
- The company says McConnell Dowell was selected for its safety and environmental record as well as experience, construction methodology and use of local content
- The contract was awarded on a fixed price basis and within the optimised feasibility study capital estimate
- BCI Minerals shares are trading steady at 46 cents
BCI Minerals (BCI) has awarded the $190 million marine structures contract for the Mardie salt and potash project to McConnell Dowell Constructors.
The marine structures package is the largest direct capital works contract for the project and includes, jetty structure, transhipper mooring equipment, material handling system and navigation aids.
The company said jetty construction is scheduled for Q4 2022 and the award of the contract represents a critical schedule item to achieving first salt on ship in Q4 2024.
Following a four-month early contractor involvement process, McConnell Dowell was selected for its safety and environmental record as well as experience, construction methodology and use of local content.
Mardie’s contracting strategy focuses on maximising work under fixed price lump sum contracts and balanced vesting of risk with contractors.
Therefore, the package will broadly be delivered under a design and construct contractual arrangement with contract cost below the optimised feasibility study estimate.
Mardie project director, Sam Bennett, said the 2.4-kilometre jetty and transhipping project will result in a cost-effective logistics solution for the export of Mardie products.
“McConnell Dowell has significant experience designing and constructing similar structures and systems and has demonstrated exceptional safety standards, environmental controls, quality assurance frameworks and local community engagement,” he said.
“Award of the marine structures contract within our Optimised Feasibility Study
capital cost estimate is a positive result given significant cost pressures in the construction industry.”
The scope of work for the package includes the design, supply, fabrication, construction, installation, testing and commissioning of the marine facilities.
BCI Minerals shares were trading steady at 46 cents at 1:39 pm AEDT.
