Australia BCI Minerals signs long-term transhipment agreement for Mardie project

HOUSTON (ICIS)–Australian BCI Minerals announced it has signed a 21-year transhipment services agreement with CSL Australia for its Mardie salt and potash project in Western Australia.

The producer said undertaking transhipment operations at Mardie provides a cost-effective alternative to a deep-water port as it eliminates the need for towage and pilots and is expected to perform well in the local weather conditions.

As planned, the transhipper will travel 12-15 nautical miles from a jetty loadout facility to fill ocean-going vessels with a deadweight of up to 207,000 tonnes, which BCI said gives a significant strategic advantage over regional competitors, which cannot load vessels of this size.

This agreement, valued at Australian dollars (A$) 598 million ($398.7 million) will be delivered in two phases, with the first portion done under a 12-month time charter agreement using an existing transhipment vessel.

At the same time, CSL will construct a new vessel to use at Mardie, which is targeting output of 5 million tonnes/year of salt and 140,000 tonnes/year of sulphate of potash (SOP).

It is anticipated this new transhipment vessel will be constructed in approximately 36 months.

BCI said phase two will begin upon commissioning of their vessel and completion of a 20-year services agreement which will contain two five-year extension options.

“BCI Minerals is very pleased to sign this major contract with CSL for a vessel specifically designed for the Mardie salt and potash project, which will provide us with a secure and cost-effective shipping solution providing real benefits to our operations and our customers,” said David Boshoff, BCI Minerals managing director.

“CSL’s market leading reputation for delivering transhipment solutions and their commitment to safety and reliability make them an ideal long-term partner for BCI Minerals.”

$1 = A$1.50