BCI Minerals is an Australian-based minerals company that explores and develops a portfolio of iron ore and industrial minerals projects across Western Australia. The company operates in the Pilbara region, which contains some of the world’s largest and highest quality iron ore deposits. BCI Minerals focuses on advancing its key iron ore projects – Mardie Salt & Potash and Buckland Mineral Sands – towards production. Additionally, the company aims to commercialize the Iron Valley iron ore mine in the near future.
Quick Answers
Some quick answers to common questions about BCI Minerals include:
- BCI Minerals explores and develops iron ore deposits and industrial minerals projects in Western Australia.
- The company’s main projects are Iron Valley, Mardie Salt & Potash, and Buckland Mineral Sands.
- Iron Valley is an iron ore mine that BCI is working to commercialize and bring into production.
- Mardie is a large salt and potash project with the potential to produce salt, sulfate of potash, and other minerals.
- Buckland is a mineral sands project containing zircon, ilmenite, and other valuable minerals.
- BCI aims to advance these projects and bring them into commercial production in the coming years.
- The company operates exclusively in Western Australia’s Pilbara region, home to major iron ore deposits.
- BCI Minerals is headquartered in Perth, Western Australia.
Company Overview
BCI Minerals Limited is a Perth-based minerals exploration and development company focused on advancing its 100% owned Mardie Salt & Potash Project and its 75% interest in the Buckland Mineral Sands Project, both located in the West Pilbara region of Western Australia. The company also owns an interest in the Iron Valley iron ore mine, which it aims to commercialize in the near future.
BCI Minerals was founded in 2006 and has been primarily focused on exploration and resource definition. It has now reached the stage where it is working to develop its core salt, potash and mineral sands projects into operations. The company is run by an experienced management team with backgrounds across mining, finance, and engineering.
BCI Minerals aims to become a significant producer of high-purity salt, sulfate of potash (SOP) and other specialty fertilizer products from the Mardie Project. It also plans to produce zircon, titanium dioxide feedstocks and other minerals from Buckland. The commercialization of Iron Valley would provide additional cash flow in the nearer term.
By developing these projects, BCI Minerals seeks to generate strong shareholder returns and positively contribute to the communities and environment in which it operates. Sustainable and innovative mining practices are central to the company’s approach.
Iron Ore Projects
BCI Minerals’ key iron ore project is the Iron Valley mine, located in the Central Pilbara region. Iron Valley is an existing mine that has been operated by MIN Res since 2013, based on an ore purchase agreement with BCI Minerals.
Iron Valley contains a proven and probable iron ore reserve of 122 million tonnes at 58.2% Fe. The mine has typically produced at a rate of 6-7 million tonnes per annum of iron ore concentrate and lump.
BCI Minerals aims to commercialize Iron Valley and transition it from a contractual mining operation to a commercial mining operation owned and operated by the company. This is expected to provide additional revenue and cash flow for BCI Minerals in the coming years.
In addition to Iron Valley, BCI Minerals has a portfolio of other iron ore exploration projects at various stages across the Pilbara. However, the main near-term focus is on bringing Iron Valley into commercial production.
Iron Valley Mine Details
| Detail | Description |
|---|---|
| Location | Central Pilbara region, Western Australia |
| Ownership | BCI Minerals (75% interest), MIN Res (25% interest) |
| Ore Reserve | 122 million tonnes @ 58.2% Fe |
| Mining Method | Conventional open pit |
| Processing | Crushing, screening to produce lump and fines products |
| Production Rate | 6-7Mtpa concentrate and lump |
| Mine Life | ~15 years based on reserves |
Industrial Minerals Projects
BCI Minerals’ main industrial minerals projects are the 100% owned Mardie Salt & Potash Project and the 75% owned Buckland Mineral Sands Project.
Mardie Salt & Potash Project
Mardie is a large saline salt plain located on the coast in the West Pilbara region. BCI Minerals has defined a major resource and aims to produce high-purity salt, sulfate of potash (SOP) and other specialty fertilizer products from seawater evaporation ponds at Mardie.
Key details of the Mardie Project include:
- Total tenement area of 140km2 over the Mardie salt plain.
- Defined Ore Reserves of 3.3Mt salt and 75Mt SOP.
- Production potential of 3-4Mtpa salt and 75-100ktpa SOP.
- Initial mine life of 30-40 years.
- Definitive Feasibility Study completed with excellent economic outcomes.
- All primary approvals received to allow project development.
- Production targeted from 2024, pending financing.
Mardie will involve pumping seawater into evaporation ponds over the salt plain. Solar evaporation and processing will then concentrate and crystallize NaCl salt and K2SO4 SOP products, which will be harvested and exported. There is potential to produce other salts and fertilizers over time as well.
The Mardie Project represents a sustainable opportunity to produce salt and potash products without mining. BCI Minerals has targeting premium markets for the high purity salt and SOP output.
Buckland Mineral Sands Project
The Buckland Project is located 40km south of Port Hedland and contains a major mineral sands resource rich in zircon, ilmenite, rutile and other minerals. BCI Minerals owns 75% of the project and aims to develop a mineral sands mine and processing operation at Buckland.
Key aspects of the Buckland Project include:
- Total JORC resource of 1.6Bt at 2.2% heavy minerals.
- Assemblage includes zircon, ilmenite, rutile, leucoxene and monazite.
- Pre-feasibility study completed outlining a 3Mtpa mining operation.
- Initial 20-year mine life with expansion options.
- Conventional dry mining and mineral separation processing route.
- Strategically located 40km from Port Hedland with established infrastructure.
- All primary approvals in place and development targeted from 2023.
Buckland represents a significant opportunity for BCI Minerals to enter the mineral sands sector. The zircon produced is a high value product with strong demand and pricing outlook. Ilmenite and other titanium minerals will also generate revenue from this project.
Growth Strategy
BCI Minerals’ current growth strategy is focused on:
- Transitioning the Iron Valley mine into commercial production.
- Developing and commissioning the Salt & Potash operation at Mardie.
- Progressing Buckland to fully financed development.
- Continuing exploration and evaluation of early stage Pilbara iron ore and industrial minerals opportunities.
Delivering these core projects is expected to see BCI Minerals transition into a mid-tier mining company and mineral producer. Cash flows from Iron Valley and Mardie will support this growth and establish BCI as a significant player in salt, potash and mineral sands.
BCI Minerals has accumulated an attractive portfolio of 100% owned projects. Unlocking these through development in a disciplined manner will deliver value for shareholders and long-term sustainability for the company. The experienced management team is focused on executing this strategy.
Financial Performance
As a minerals development company, BCI Minerals is currently in an investment phase with expenditure focused on exploration, feasibility studies and early works construction for its core projects.
Once the Mardie, Buckland and Iron Valley projects are operational, BCI Minerals is forecast to generate strong operating cash flows through the sale of its mineral products.
Key recent financial metrics for BCI Minerals include:
- Cash balance of $52.4 million as of June 2022.
- No debt.
- Total assets of $149 million.
- YTD revenue of $18.8 million mostly from Iron Valley iron ore sales.
- YTD net loss after tax of $4.7 million as the company invests in growth projects.
BCI Minerals has forecast strong financial returns from its three core projects once operational, underpinning potential future dividends and growth opportunities. Funding plans are in place to progress the projects to production.
Financial Forecasts
| Project | Capital Cost | Annual EBITDA | IRR |
|---|---|---|---|
| Iron Valley | $21 million | $35-70 million | 50%+ |
| Mardie | $529 million | $140-230 million | 20%+ |
| Buckland | $240 million | $90-150 million | 20%+ |
Management Team
BCI Minerals has a highly experienced management team covering all aspects of exploration, project development, mining, processing, and corporate functions. Key executives include:
- Alwyn Vorster – Managing Director. Over 25 years experience in mining and development.
- Simon Hodge – Chief Financial Officer. Background in mining finance and commercial roles.
- Francis De Rosa – Projects Director. Engineering, construction and project management experience.
- Steven Lowe – Exploration Manager. Geologist with 20+ years in the industry.
- Michelle Blandford – Sustainability and Approvals Manager. Expertise in environmental impact and community engagement.
The board is chaired by Brian O’Donnell, a mining industry veteran with decades of experience. BCI Minerals has personnel with the required technical capabilities and experience to advance the company’s projects.
Corporate Social Responsibility
BCI Minerals operates according to a Sustainability Policy focused on health and safety, environmental responsibility, community engagement, and governance.
Key aspects of the company’s sustainability approach include:
- Strong commitment to safety and wellbeing of employees and contractors.
- Developing projects to minimize environmental harm and disturbance.
- Proactive engagement and partnership with indigenous Traditional Owners for mutual benefit.
- Regular community consultation and support of local groups and initiatives.
- High standards of corporate governance and transparency.
- Consideration of sustainability issues and climate change risks in decision making.
At the Mardie Project, which does not require mining, the approach is focused on preservation of marine life, careful brine disposal, and co-existence with pastoral activities.
BCI Minerals looks to make a positive social contribution while ensuring its operations are economically, socially and environmentally sustainable over the long term.
Conclusion
BCI Minerals is an emerging mining and minerals development company focused on salt, potash and mineral sands opportunities in Western Australia’s Pilbara region. Through the development of its core Mardie, Buckland and Iron Valley projects in a sustainable manner, BCI Minerals aims to deliver strong shareholder returns and generate positive economic benefits for stakeholders.
The company has accumulated an attractive portfolio of 100% owned projects. An experienced management team is progressing development studies and early works construction for these projects, with the aim of transitioning BCI into a significant producer of high-purity salt, potash and mineral sands products.
With key approvals in place and clear development plans, BCI Minerals is positioning itself to move towards production and cashflow generation within the next few years. The developments of Mardie, Buckland and Iron Valley represent an exciting growth phase for the company as it seeks to create long-term value from its quality assets.
