BCI secures debt financing for Mardie
PERTH (miningweekly.com) – ASX-listed BCI Minerals said on Friday it had secured A $ 740 million debt financing for the development of its Mardie salt and potash project in Western Australia.
The project will require capital expenditure of approximately A $ 1.2 billion to support production of 5.35 million tonnes per year of salt and 140,000 t / y of potassium sulphate (SoP).
The project is expected to produce some 5.35 million tonnes of salt per year and some 140,000 t / y of SoP, over an expected mine life of at least 60 years.
BCI said on Friday that the A $ 740 million financing package included a 15-year A $ 490 million facility from the Northern Australia Infrastructure Facility (NAIF).
The NAIF Board of Trustees approved an A $ 40 million increase in the previously approved A $ 450 million loan in December of last year, in recognition of the larger project completed under the study. of optimized feasibility.
The finance package also includes a 10-year AUD 110 million facility from Export Finance Australia (EFA), which has obtained conditional approval for the borrowing facility, while two large commercial banks have granted credit approvals. for A $ 310 million commitments to Green Commercial Facilities for the project, which include an A $ 140 million 7.5-year construction facility, an A $ 120 million cost overrun facility and a A $ 50 million bank guarantee for any performance bond required under construction or operation contracts.
All facilities remain subject to formal documentation, obtaining required tenure and approvals, equity financing, drawdown agreements, and other customary loan preconditions.
“Securing this historic A $ 740 million project finance debt package represents a key milestone for the Mardie salt and potash project and will support the ongoing review of the BCI Board of Directors for advancing Mardie towards a Final Investment Decision (FID) ”, BCI MD Alwyn vorster noted.
“The participation of government donors such as NAIF and EFA, as well as the confidence shown by major commercial banks in the technical, economic and ecological credentials of the project is a strong validation of Mardie’s potential. BCI is now well positioned to complete the FID, raise the required new equity capital and, subject to final approvals, begin main construction.