BCI Minerals starts divestment of iron ore asset portfolio

24 August 2018 (Last Updated August 24th, 2018 11:14)

BCI Minerals has started a process to sell its current portfolio of iron ore assets that comprise rights of the Iron Valley mine, the Kumina and Bungaroo South projects, the Cape Preston East port, and some other iron ore exploration tenements.

BCI Minerals has started a process to sell its current portfolio of iron ore assets that comprise rights of the Iron Valley mine, the Kumina and Bungaroo South projects, the Cape Preston East port, and some other iron ore exploration tenements.

Divestment of the portfolio, which represents a resource base of nearly 600Mt, is expected to bring more than $100m to BCI Minerals, reported thewest.com.au.

BCI’s existing iron ore assets comprise one of the largest Pilbara hematite resource bases held outside the major Pilbara manufacturers.

“This decision is aligned with BCI’s stated intent of developing a salt and potash business as the primary focus in the near term.”

BCI Minerals said in a statement: “Following completion of a maiden JORC Mineral Resource estimate at the Kumina tenements in June 2018 (refer BCI’s announcement of 28 June 2018), BCI has been approached by multiple parties expressing strong interest in acquiring Kumina and BCI’s other iron ore assets.

“As a result, the board has resolved to undertake a formal process to explore the potential divestment of the entire iron ore asset portfolio.

“This decision is aligned with BCI’s stated intent of developing a salt and potash business as the primary focus in the near term.”

BCI expects to use the proceeds from the divestment to accelerate the progress of definitive feasibility study of its $335m Mardie Salt & Potash project between Onslow and Karratha in Western Australia.

The funds will also enable BCI to maintain a full ownership of the Mardie project until a target final investment decision date in late next year, as well as maximise the company’s project interest during the development stage.

BCI has selected PCF Capital as corporate adviser and Gilbert + Tobin as legal adviser to complete the divestment process.