BCI Minerals Limited (ASX:BCI) announces the signing of a non-binding Memorandum of Understanding (MOU) with PT Mineral Industri Indonesia (Persero) (MIND ID) regarding the potential offtake of up to 1 Mtpa of salt produced by the Mardie Salt and Potash Project and a potential A$100 million equity investment in BCI by MIND ID.
The possible offtake and equity investment are both contingent on the conclusion of formal agreements; however, there is no assurance that any legally binding transaction will be carried out. Negotiations are expected to wrap up in Q3/Q4 of CY 2023, according to the parties.
An Overview of PT Mineral Industri Indonesia (Persero)
The Indonesian government has invested heavily in the mining industry, and PT Mineral Industri Indonesia (Persero) is the holding corporation for these holdings. It serves as a marketing hub for mining products and an umbrella for exploration and mining industry management.
Introduction to BCI Minerals Limited
Australian-based natural resources firm BCI Minerals Limited (ASX: BCI) is building an industrial minerals business, with salt and potash as its initial targets.
BCI Minerals Mardie Salt & Potash Project, located on the Pilbara coast in the heart of Western Australia’s primary salt production region, is a potential Tier One project that is now under development.
The goal of the Mardie Salt and Potash project is to use sun evaporation of saltwater to generate around 5Mtpa of high-purity salt (>99.5% NaCl) and about 140ktpa of Sulphate of Potash (SOP) (>52% K2O). Early in 2022, major construction on the Mardie Project began.
Royalty payments from Mineral Resources Limited (ASX: MIN) Iron Valley mine in Western Australia’s Central Pilbara region are made to BCI Minerals Limited every three months.
Large stakes in Agrimin Limited (ASX: AMN) and the possibility of royalties and/or delayed payments from iron ore deposits at Koodaideri South, Bungaroo South, Kumina, and Nullagine round out BCI’s other assets.
