Yesterday, BCI Minerals Ltd (ASX: BCI) announced it had been awarded a construction contract for a new sulphate of potash (SOP) pilot plant at its flagship Mardie Salt Operation and Potash Project. This pilot plant marks a major step towards validating commercial-scale SOP production from the Mardie feedstock.
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What did BCI Minerals report?
- Construction contract awarded for a 150 kg/hr SOP pilot plant at Mardie Salt Operation
- Pilot plant expenditure funded within the approved A$1.443 billion Mardie project budget
- Commissioning targeted for the start of Q2 FY2028, with 12-month piloting phase
- Approximately 1,000 tonnes of representative KTMS feedstock to be produced in Q2 FY2027
- Bluestar Lehigh Engineering Institute Co, Ltd engaged as lead designer and constructor
What else do investors need to know?
The new SOP pilot plant will allow BCI Minerals to test the value-adding potential of converting bitterns into high-value, premium fertiliser products onsite. This staged investment is intended to support continuous, end-to-end testing under operating conditions to refine technical and process design before any large-scale decisions are made.
The pilot initiative is fully funded from BCI's existing project resources, meaning no change to the scope or schedule of the Mardie salt operation. The independent consultancy eXcellerate will provide oversight across design, risk, procurement, and commissioning, with a view to ensuring robust, reliable results.
What did BCI Minerals management say?
Managing Director David Boshoff said:
The SOP pilot plant is an important next step in BCI's disciplined approach to maximising the value of the Mardie resource. It will allow us to assess the value-adding of bitterns into SOP, with the potential for Mardie to become Australia's only operation producing both salt and SOP on one site. Piloting is the disciplined way to approach SOP. It gives us realistic, continuous end-to-end data on feed material in our own operating environment, which is exactly what we need to finalise a robust flowsheet and reduce technical and process uncertainty before any future full-scale investment decision. We are funding this entirely from within the existing approved project budget, and it does not change the scope or schedule of the Mardie salt operation.
What's next for BCI Minerals?
BCI Minerals will now focus on producing and processing around 1,000 tonnes of feedstock for the pilot, aiming to commission the new SOP facility at the start of Q2 FY2028. Piloting will run for approximately 12 months, giving the company valuable operational data for refining its SOP process.
Any decision to proceed with a full-scale SOP facility will depend on successful piloting results, further feasibility work, and a separate investment decision. This staged approach supports BCI's strategy to diversify Mardie's earnings base and potentially establish a unique Australian operation.
BCI Minerals share price snapshot
Over the past 12 months, BCI Minerals shares have risen 31%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.
