Mardie Salt and Potash project owner BCI Minerals said today that key Government loan providers have given their approval for $650 million in project financing for the Mardie salt project.
Mardie Salt and Potash Project owner BCI Minerals today said subject to the satisfaction of customary project finance conditions precedent, BCI Minerals Limited (ASX: BCI) has secured authorisation for $650M of project finance debt for the Mardie Salt Project. This encompasses all aspects of the Mardie project except for the SOP Plant.
Given the high environmental, social, and governance (ESG) credentials of the Mardie Salt and Potash Project, BCI Minerals anticipates obtaining Green Loan accreditation for the commercial facilities. The Green Commercial Loan Facilities will be in accordance with the Green Loan Principles established by the Asia Pacific Loan Markets Association, which serve as the international market standard for Green Loans.
During the operating phase of the Mardie Salt and Potash Project, more than 99% of the energy that is necessary to generate salt and SOP will be derived from natural solar and wind sources. It is essential to establish eligibility for a Green Loan by meeting the criteria for the prevention of pollution, the recovery of materials, the re-use of resources, and the creation of agricultural fertiliser from waste salt using environmentally responsible techniques.
In addition to the credit facilities that have been approved, BCI Minerals has also received a letter of interest from Export Development Canada (EDC) regarding the possibility of EDC’s participation in the project’s financing. EDC’s interest is relatively recent and relates to the intended supply of Canadian equipment and services.
The availability of financing by EDC is contingent on the organisation successfully completing its due diligence procedure and meeting the conditions that are customary in the field of project finance.
David Boshoff, Managing Director of BCI, made the following statement:
Securing $650M of long-term project finance approvals is an important milestone for the Mardie Salt and Potash Project, which helps underpin the completion of the project. The participation of NAIF and EFA is a sign of confidence in the technical, economic and green credentials of the Project, and is a strong validation of Mardie’s potential. BCI will now progress to obtain the remaining credit approvals required, complete the project finance, and seek to raise the required equity for Mardie Salt.
