BCI strikes offtake deal with Itochu
PERTH (miningweekly.com) – Potash developer BCI Minerals has inked an offtake term sheet with Japanese trading and investment firm Itochu for the supply of high-purity salt from the Mardie project, in Western Australia.
Itochu has agreed to negotiate a five-year offtake agreement, with 500 000 t of salt to be purchased in the first two years, 600 000 t in year three, and one-million tonnes each in years four and five.
The agreement is conditional on the Mardie project infrastructure being commissioned by the first quarter of 2027.
“BCI is excited to have reached this milestone agreement with Itochu, a world-leading chemical trading company,” said MD David Boshoff on Tuesday.
“BCI looks forward to supplying Itochu with high-purity Mardie salt and welcoming Itochu as a preferred trading partner for Japan, Korea and Taiwan. This term sheet marks an important step in the development of the Mardie project, and supports our vision of becoming a globally significant minerals business.”
BCI earlier this year flagged a A$500-million cost blow-out at the Mardie project, while also warning of delays to first production. A design and cost review updated the cost estimate for Mardie to A$1.62-billion, with a base estimate of A$1.42-billion and a contingency of A$208-million. This was significantly higher than the A$913-million cost previously estimated for the project.
The timing of the first salt on ship and first sulphate of potash (SoP) on ship, however, have both been delayed, with salt now targeted for mid-2026 and SoP mid-2027, instead of the initial target of the first quarter of 2024 and the first quarter of 2026 respectively.
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