BCI Minerals awards up to $90m Mardie contracts

30/03/2021

BCI Minerals has awarded contracts totalling $90 million for its Mardie Salt & Potash Project, to a number of Western Australian companies.

The initial earthworks contract has been awarded to WBHO Infrastructure, a contractor with a long history of project delivery excellence in large civil construction projects and a strong presence in Western Australia. The contract includes initial construction of the large-scale trial pond scheduled to commence in April, as well as construction of evaporation ponds 1 and 2, on terms aligned with DFS budget assumptions, once Final Investment Decision (FID) is achieved and required tenure and approvals are in place. The total earthworks volume in this scope is approximately 800,000 cubic metres over an area of 24 square kilometres.

Engenium, the successful tenderer for the PMC role, is a Western Australian company with offices in Perth and Karratha. Engenium was selected for its local and experienced team, proven track record in project delivery and construction management, excellent health and safety record and pricing within the DFS budget. The PMC is an important contract in the overall execution of the Mardie Project which will see Engenium manage the construction program through the provision of people and systems as an extension of the BCI owners’ team. Engagement of Engenium on a staged basis will also support BCI to achieve construction-ready status ahead of main construction commencing in 2H 2021.

Various smaller contracts covering accommodation village expansion, minor earthworks, site surveys, communications, water supply, fuel storage and supply as well as the Karratha office fit-out have been awarded this calendar year. These works are all underway with Pilbara-based contractors expanding Mardie village and fitting-out the Karratha office and local indigenous companies carrying out aboriginal heritage surveys and minor earthworks.

Commenting on the contracts, BCI’s Managing Director, Alwyn Vorster said: “The award of the initial earthworks contract in particular represents a key milestone in BCI’s progress toward main construction and demonstrates Board confidence in Mardie’s development pathway. These contracts will be initially funded from BCI’s healthy cash balance and strong Iron Valley royalty income.”