BCI Minerals secures finance for Australian salt project (updated)

BCI Minerals

09/10/2023 24:50

(Adds details on the deal, quote in paragraph 5)
       Oct 9 (Reuters) - BCI Minerals  BCI.AX  on Monday said
it has lined up a total     A$981 million ($624 million) in
finance for its salt project in Western Australia, with the
final leg coming from Canada's export credit agency.
    BCI said it had received approval for a A$150 million 
project finance facility from Export Development Canada, which
would be used to pay for equipment and services from Canadian
companies for the Mardie project.
    The Canada funding approval accompanies an additional A$31
million of finance from the project's two existing commercial
bank lenders.
    The nods come after recent finance approval for A$650
million of Australian federal government funding from the    
Northern Australia Infrastructure Facility (NAIF) and Export
Finance Australia (EFA).
    "This completion of the Project finance package is an
important project milestone, with the support shown by key
lenders indicating strong confidence in BCI’s Mardie Project,"
said Managing Director, David Boshoff.  
    BCI is in a deal with mining holding firm Mineral Industri
Indonesia (MIND ID) to supply 1 million metric tons per annum of
salt from the Mardie project. The project is designed to produce
about 5 million tons a year of salt. 
    It expects to start drawing down debt in the second half of
the 2024 financial year.
    The company said it plans to work on lining up debt funding
for a potash plant at the project in 2024, after completing
further design and cost studies.
    
    
($1 = 1.5728 Australian dollars)


 (Reporting by Ayushman Ojha; Editing by Lisa Shumaker and
Sonali Paul)
 ((Ayushman.Ojha@thomsonreuters.com))