- BCI Minerals (BCI) secures $740 million in funding for its Mardie Salt and Potash Project via three seperate loan facilities
- The business says it successfully applied for $490 million in funding from the $5 billion Northern Australian Infrastructure Facility, set up by the Federal Government
- Export Finance Australia also approved a $110 million loan, while two banks have agreed to hand over a $140 million construction loan and a $170 million cost overrun facility
- All up, BCI estimates it’ll need $1.2 billion in funds to get the salt and potash asset up and running, with the company to fund the remaining $460 million
- Shares in BCI Minerals are up 10.8 per cent at 46 cents each
BCI Minerals (BCI) has secured $740 million in funding for its Mardie Salt and Potash Project via three separate loan facilities.
The company announced on Friday it had successfully applied for $490 million in funding from the $5 billion Northern Australian Infrastructure Facility (NAIF).
The facility was set up by the Federal Government to help promote economic growth in Australia’s north, with BCI’s flagship asset located in the West Pilbara.
Originally, the Commonwealth grant facility was going to supply $450 million in funds to BCI, however, the company managed to petition for an additional $40 million.
Along with the NAIF facility, Export Finance Australia has approved a $110 million loan for the company’s project.
Additionally, two commercial banks have agreed to hand over a $140 million construction loan as well as a $170 million cost overrun facility.
Each of the loans have differing tenors and are subject to various conditions, with BCI noting each is still subject to completing detailed facility documentation.
The business estimates it needs around $1.2 billion in funding to develop the project to a capacity of 5.35 million tonnes per annum of salt and 140,000 tonnes per annum of sulphate of potash.
BCI will supply the additional $460 million needed for the asset via existing cash reserves, ongoing Iron Valley royalty earnings and corporate debt and equity.
Company MD Alwyn Vorster said he was very pleased to be able to announce today’s finding update.
“Securing this landmark $740 million project finance debt package represents a key milestone for the Mardie Salt & Potash Project and will underpin the pending consideration of the BCI Board to progress Mardie to a final investment decision,” Mr Vorster said.
“The participation of government funders such as NAIF and EFA, together with the confidence demonstrated by the lead Commercial Banks in the technical, economic and green credentials of the Project is a strong validation of Mardie’s potential.”
“BCI is now well-positioned to achieve FID, raise the required new equity and subject to final approvals, commence main construction.”
Shares in BCI Minerals were up 10.8 per cent at 46 cents each at 10:47 am AEDT.