PERTH (miningweekly.com) – The share price of ASX-listed BCI Minerals rose by nearly 11% on Tuesday on news that the company had signed a non-binding offtake memorandum of understanding (MoU) with Indonesia’s PT Mineral Industri Indonesia (MIND ID).

The MoU covers the potential offtake of up to one-million tonnes a year of salt produced from the Mardie salt and potash project, and a potential equity investment by MIND ID of up to A$100-million.

Both the offtake and potential equity investment are subject to formal agreements, and BCI said on Tuesday that the companies are working to complete the negotiations for these by the fthird or fourth quarter of this year.

BCI recently signed an offtake term-sheet with Japanese trading and investment firm Itochu for the supply of high-purity salt from Mardie. Itochu has agreed to negotiate a five-year offtake agreement, with 500 000 t of salt to be purchased in the first two years, 600 000 t in year three, and one-million tonnes each in years four and five.

The agreement is conditional on the Mardie project infrastructure being commissioned by the first quarter of 2027.

BCI earlier this year flagged a A$500-million cost blow-out at the Mardie project, while also warning of delays to first production. A design and cost review updated the cost estimate for Mardie to A$1.62-billion, with a base estimate of A$1.42-billion and a contingency of A$208-million. This was significantly higher than the A$913-million cost previously estimated for the project.

The timing of the first salt on ship and first sulphate of potash (SoP) on ship, however, have both been delayed, with salt now targeted for mid-2026 and SoP mid-2027, instead of the initial target of the first quarter of 2024 and the first quarter of 2026 respectively.

BCI shares closed the day at 25.5c each, up from a closing price of 23c a share on Monday.