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Overview

ICBC contributes $90.5 million AUD to a $181 million AUD construction loan of a $981 million AUD syndicated loan to Mardie Minerals Pty Ltd for the Mardie Salt and Potash Mine Project

Commitments (Constant USD, 2023)$60,122,664
Commitment Year•2023Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 20, 2023
Start (actual)
Jan 1, 2022
Last repayment (originally scheduled)
Dec 18, 2030

Geospatial footprint

Map overview

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The proceeds of the construction loans would be used to develop and construct the Mardie Salt and Potash Mine Project, a facility which will produce high purity sodium chloride (NaCl) and sulphate of potash (SOP or K2SO4) from seawater through solar and wind evaporation, located in the Pilbara region of Western Australia. More detailed locational information can be found at https://www.openstreetmap.org/way/1239669237.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Westpac Banking Corporation

State-owned companies

  • Export Development Canada (EDC)
  • Export Finance Australia (EFA) (formerly Export Finance and Insurance Corporation (EFIC))

State-owned Funds

  • Northern Australian Infrastructure Facility (NAIF)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Mardie Minerals Pty Ltd

Implementing agencies

Private Sector

  • McConnell Dowell Corporation Limited
  • Stantec Inc.

Guarantors

Private Sector

  • BCI Minerals Limited (formerly BC Iron Limited)

Loan desecription

ICBC contributes $90.5 million AUD to a $181 million AUD construction loan of a $981 million AUD syndicated loan to Mardie Minerals Pty Ltd for the Mardie Salt and Potash Mine Project in Australia 2023

Interest type•UnknownMaturity•7 years

Collateral

BCI secured the facilities against salt proceeds projections, which would be the first product that the plant produces.

Narrative

Full Description

Project narrative

On December 20, 2023, a deal in which a syndicate of five lenders — including the Industrial and Commercial Bank of (ICBC) — announced a $981 AUD ($660 million USD) loan agreement with Mardie Minerals Pty Ltd — a special purpose vehicle (SPV) and wholly-owned subsidiary of BCI Minerals Limited, an Australia-based mining and resources enterprise — for the Mardie Salt and Potash Mine Project. The facility included the following financial arrangements with these lenders and terms: 1) a $181 million AUD ($123.83 million USD) construction loan which carried a maturity period of seven years, provided by ICBC and Westpac. ICBC and Westpac each contributed $90.5 million AUD ($61.91 million USD); 2) a $150 million AUD ($102.62 million USD) export credit facility provided by the Export Development Canada; 3) a $160 million AUD ($109.46 million USD) export credit facility provided by Export Finance Australia, which carried an 11-year maturity period; and 4) a Northern Australia Infrastructure Facility (NAIF) construction loan which carried a maturity period of 15 years. BCI secured the facilities against salt proceeds projections, which would be the first product that the plant produces. Credit approval was approved on October 9, 2023. On October 4, 2024, financial close was reached on the deal. The publicly released lenders, details, and terms of the deal were seemingly not altered between its announcement and signing dates. The proceeds of the construction loans would be used to develop and construct the Mardie Salt and Potash Mine Project, whereas the $150 million AUD loan would be used as a bank guarantee and for cost overrun purposes. The Mardie Salt and Potash Mine Project will produce high purity sodium chloride (NaCl) and sulphate of potash (SOP or K2SO4) from seawater through solar and wind evaporation, and is located in the Pilbara region of Western Australia. The site features nine seawater progressive evaporation ponds; salt crystallisers; a salt wash plant; kainite-type mixed salts (KTMS) crystallisers; a SOP plant; specialized port facilities, including a 2.4km jetty and 4.4km dredged navigation channel; and other supporting infrastructure. The plant is expected to operate for at least 60 years, with a planned production of 5.35 million tonnes per annum (Mtpa) of NaCl and 140 thousand tonnes per annum (ktpa) of SOP. Construction on the site began in early 2022 and is projected to last three years. Stantec served as Project Management Contractor. McConnell Dowell provided construction services on the marine infrastructure.

Staff comments

1. In addition to the lenders, the following entities played these roles in the deal: KPMG provided financial advice to BCI Minerals; Herbert Smith Freehills provided legal advice to BCI Minerals; and Allens provided legal counsel to lender(s). 2. BCI Minerals Limited is an Australian company that develops mineral assets, including salt and potash deposits, in Western Australia. It was formerly known as BC Iron Limited, but changed its name in December 2017.