BCI awards key Mardie marine structures contract
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BCI continues to progress its Mardie Salt & Potash Project with the award of the giant $190m marine structures design and construction contract to McConnell Dowell.
The package is the largest direct capital works contract for the project and covers the jetty structure, transhipper mooring equipment, material handling system and navigation aids.
Final design and procurement will begin immediately, while jetty construction is scheduled to begin in Q4 2022 subject to approvals and is a critical step towards achieving first salt on ship in Q4 2024.
The contract award follows on BCI Minerals (ASX:BCI) executing the tripartite Port of Cape Preston West Indigenous Land Use Agreement (ILUA) with the Wirrawandi Aboriginal Corporation (WAC) and the Western Australian Government to allow for the creation of a port reserve at Cape Preseton West.
“Mardie’s 2.4km jetty and transhipping system will result in a cost-effective logistics solution for the export of Mardie products,” Mardie project director Sam Bennett said.
“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.
“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.”
Construction of the 2.4km long jetty at Captain Preston West will take place over 24 months and will involve anchoring of more than 200 steel piles of up to 30 metre lengths and weighing a combined 3,800 tonnes to the ocean floor.
BCI’s flagship $1.2bn Mardie project is expected to be the first major salt development in Western Australia in more than 20 years and one of the largest in the world.
The project is expected to produce 5.35 million tonnes per annum of sodium chloride and 140,000tpa of sulphate of potash over a life of 60 years.
It is expected to generate annual earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $260m thanks to operating costs of about $21.50/t of salt and $337/t of potash, well in the bottom quartile of similar projects.
Key environmental approvals are already in place with work currently underway to finalise secondary approval assessments that will enable development to begin.
This article was developed in collaboration with BCI Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.