BCI Minerals signs $598m transhipment contract with CSL Australia

July 1, 2024

BCI Minerals signs $598m transhipment contract with CSL Australia

(Image source: BCI Minerals) BCI and CSL signing ceremony from L-R: BCI chief financial officer Stephen Fewster, BCI senior legal counsel Dolores O’Hare, BCI general counsel and company secretary Stephanie Majteles, BCI managing director David Boshoff, CSL Australia vice-president, commercial Daniel Wilson, CSL assistant general counsel Annie Choquette, CSL regional director Josina Meier and BCI general manager marketing Trevor Larbey.

BCI Minerals (ASX: BCI) has signed a binding agreement with CSL Australia to provide transhipment services for the Mardie Salt and Potash project in WA.

Transhipping eliminates the need for towage and pilots, providing a cost-effective alternative to a deep-water port. This method is expected to perform well in Mardie’s weather conditions.

The transhipper will travel 12-15 nautical miles from BCI’s jetty loadout facility to load ocean-going vessels with a deadweight of up to 207kt, offering Mardie a significant advantage over competing projects which cannot load vessels of this size.

BCI managing director David Boshoff commented on the agreement.

“BCI Minerals is very pleased to sign this major contract with CSL for a vessel specifically designed for the Mardie salt and potash project, which will provide us with a secure and cost-effective shipping solution providing real benefits to our operations and our customers,” he said.

“CSL’s market leading reputation for delivering transhipment solutions and their commitment to safely and reliability make them an ideal long-term partner for BCI Minerals.”

The agreement will be delivered in two phases with phase one seeing an existing transhipment vessel (TSV), Osprey, used to load Handysize and Capesize vessels at anchorage while CSL builds a new TSV. This phase goes for 12 months.

Upon completion and commissioning of the TSV, a 20-year transhipment services agreement will begin, with two five-year extension options.

The TSV will handle up to 5.35mtpa of salt and 140ktpa of sulphate of potash, with the capacity of leading vessels up to 207kdwt.

CSL president and chief executive Louis Martel says the company is excitied to partner with BCI.

“We are honoured to collaborate with BCI Minerals – a valued partner who we share a strong commitment to safety and environmental responsibility,” he said.

“CSL is thrilled to spearhead the design, construction and operation of this custom-built diesel-electric ship, which will serve as a high-performance, safe and sustainable solution for the Mardie project.”