BCI Minerals (ASX:BCI) used its December 2025 quarterly update to outline progress at its Mardie project across operations, construction, safety, financing, and market conditions, while reiterating its plan to begin salt shipments in the December 2026 quarter and advance sulfate of potash (SOP) as a future revenue stream.
Operational ramp-up and digital systems
Managing Director David Boshoff said Mardie is already “Australia’s largest solar salt operation and the third largest globally,” with salt operations underway and a planned ramp-up to 5.35 million tonnes per annum. He said the company’s focus is on delivering salt to customers “later this year” and progressing SOP as the next revenue stream, targeting about 140,000 tonnes per annum.
BCI also highlighted the rollout of systems under what it calls the “Mardie Operating System,” including a mine production reporting system and a laboratory information management system. Management said the systems, alongside the Poseidon digital twin, are intended to improve operational visibility and support timely, data-driven decisions.
Boshoff cited technical milestones that he said are important for steady-state operations and quality outcomes, including calcium carbonate sealing in Pond 6 and gypsum formation across ponds 7, 8, and 9. He also noted the arrival of brine shrimp in Pond 7, which he said helps clear nutrients and supports salt quality.
Construction progress and port approvals
BCI reported the project was 77% complete during the quarter. Construction work included commencing sealing of the primary crystallizers, completing major earthworks for the salt wash pond, stockyard, and non-processed infrastructure, and advancing port works at the Port of Cape Preston West.
BCI said it secured “all primary approvals” for offshore placement of dredging material at the port, calling it a key milestone that also “significantly de-risks achieving our construction budget.” Management said dredging of the berth pocket and navigation channel is expected to begin in April 2026, subject to remaining approvals and contracting steps.
At the port, the marine package was described as 94% complete, with electrical and mechanical installations progressing. Remaining works include final piles and a catwalk, which management said are scheduled for completion in September 2026.
In response to a question about the Salt Wash Plant, Boshoff said earthworks were completed, the concrete package had been awarded, and fabrication for reinforcement was underway. He said the company expected to award fabrication of the main structure in the coming month or so, followed by construction and then electrical and instrumentation work. Boshoff said commissioning could begin “perhaps late October,” dependent on salt availability, with a goal of being ready for production in November for shipments in December.
Safety metrics and sustainability activities
BCI reported more than 400 “leadership in the field” safety interactions and 290 critical control verifications during the quarter. Its 12-month rolling average total recordable injury frequency rate was 3.9. Management also said it continued to manage the complexity of concurrent operational and project activities on site.
On sustainability, Boshoff cited ongoing monitoring programs including mangroves, samphire and algal mats, marine turtles, and migratory shorebirds. The company also said it convened a co-designed workshop with the Wirrawandi Aboriginal Corporation to update its Indigenous engagement strategy.
Financial position and funding
CFO Steve Fewster said construction remained within budget and that BCI continued to be in a strong financial position. During the quarter, BCI drew A$99.8 million from its syndicated debt facility, bringing total debt drawn to A$446.8 million as of the end of December.
Fewster said the company issued more than 50 million new shares following the conversion of Series One convertible notes held by AustralianSuper Pty Ltd, which reduced borrowings by A$29.1 million.
Total construction costs were reported at “just over A$1 billion,” with A$41 million spent during the quarter. Cumulative expenditure was stated as A$1,043 million, and Fewster said BCI had invested almost A$1.3 billion in the Mardie salt operation when including pre-revenue operating expenditure of around A$295 million.
Fewster said BCI had A$601 million of available liquidity at quarter end and estimated about A$400 million remained to complete construction. He said the company was “fully funded to complete construction,” including working capital needs through ramp-up, and noted A$351 million in uncommitted funds for remaining major packages such as dredging, the balance of crystallizer lining, and the salt wash plant.
Salt and SOP outlook, plus optionality
On market conditions, Fewster said fundamentals for high-grade industrial salt remained strong. While he noted some short-term softness in demand among certain Chinese chlor-alkali producers tied to slower real estate growth and domestic consumption, he emphasized a positive medium-term outlook across Asia.
Fewster discussed Indian exports to China, saying volumes increased over the last five years to a peak of 28 million tonnes in 2024 before pulling back to 26 million tonnes in 2025. He said BCI expects volumes to reduce further as Indian chemical industries expand to supply local demand. He added that between now and the end of 2028, 16 new chlor-alkali and soda ash plants under construction in India, China, and Indonesia are forecast to increase demand for high-grade industrial salt by 10.2 million tonnes per annum, while only 6 million tonnes per annum of new supply is expected to enter the market, including Mardie.
Asked whether Mardie’s ramp-up could flood the market, Fewster said he did not expect that outcome and argued the timing aligns with new chemical capacity being built in Asia, including production replacing plant closures in Europe. He also pointed to rising rainfall in India’s Gujarat region affecting evaporation and yields, and said Indian policy settings restrict expansion of salt production there.
BCI also outlined potential upside from its port, which Fewster described as a multi-user facility designed to export around 20 million tonnes per annum of bulk commodities. He said Mardie’s salt needs at nameplate would be around 5.5 million tonnes per annum, leaving about 14.5 million tonnes of surplus capacity. Fewster said BCI has received inquiries from potential third-party users, particularly iron ore project proponents, though he suggested meaningful progress may be more likely beyond the next one to two years as those groups advance approvals, funding, and final investment decisions. He added BCI would still need to determine pricing, referencing a gazetted rate of about A$9.10 per tonne at the Port of Ashburton as one data point.
On SOP, Boshoff described it as a high-value premium fertilizer compared with muriate of potash (MOP), noting SOP contains sulfur as well as potassium and is suited for high-value crops. During the quarter, BCI commissioned all KTMS trial crystallizers, achieving steady-state operation in line with expectations. Boshoff said batch plant testing allowed BCI to finalize the pilot plant scope, with preparations underway to award the design package in the current quarter. In Q&A, he said high-temperature tests in China and Perth showed selected collectors performed well above 50 degrees Celsius, which he described as a key input ahead of pilot plant design.
BCI also discussed longer-term optionality. Boshoff said there are other products produced from sea brine by other operators, including bromine and magnesium, and he also cited data suggesting “pharmaceutical salt” as a potential product. Separately, he said BCI has additional leases primarily to the south of its current site and some to the north, though any expansion would require further environmental approvals and management plans, which he cautioned can take time.
BCI also announced a two-year capacity building program with Wirrawandi Aboriginal Corporation, including A$480,000 intended to support governance systems, financial management, leadership development, and succession planning.
About BCI Minerals (ASX:BCI)
BCI Minerals Limited engages in the development and operation of mineral assets in Australia. The company explores for salt, iron ore, and potash deposits. It primarily focuses on its 100% interest owned in the Mardie Salt and Potash Project located in the West Pilbara coast, as well as owns interest in the Iron Valley, an iron ore mine located in the Central Pilbara. The company was formerly known as BC Iron Limited and changed its name to BCI Minerals Limited in December 2017. BCI Minerals Limited was incorporated in 2006 and is based in West Perth, Australia.
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