BCI Minerals' Mardie Salt Project Nears a Historic First Shipment

Construction of Australia's first new salt operation in 30 years is largely de-risked and on budget, with fund managers looking past short-term weather delays.

30 Sep 2026 · 3 min read

BCI Minerals is Ryder Capital's largest holding as it builds the Mardie Salt Project, the first new salt operation to come online in Australia in 30 years, with construction now largely de-risked and progressing within budget even as short-term weather delays and softer spot salt prices weighed on sentiment along the way.

Construction progresses within budget toward first salt

Ryder Capital, holding a 15.1 percent portfolio weight in BCI, said the company had a strong quarter reflecting excellent progress on the Mardie Salt Project, with construction completion over 69 percent as of 30 June, up from 61 percent the prior quarter, importantly remaining within budget, while first salt on ship was reiterated for late calendar year 2026, with the company continuing to fill all nine of its evaporation ponds.

BCI had a strong quarter reflecting excellent progress on the Mardie Salt Project with construction completion at over 69% (up from 61% in the prior quarter) as of 30 June and importantly, remaining within budget while first salt on ship has been reiterated for late calendar year 2026.

— Ryder Capital, Quarterly Report, September 2025

Regulatory approvals and a major capital conversion

Sandon Capital said BCI Minerals secured all primary approvals from the federal and Western Australian state governments to enable its optimised dredging method at Cape Preston West Port, with dredging expected to commence in April 2026, alongside AustralianSuper converting its Series 1 Convertible Notes into around 50 million shares at a conversion price of $0.5811 per share.

Weather delays and soft spot prices test conviction

Ryder Capital said BCI, its largest holding, slipped a further 3 cents, almost 8 percent, as the market unduly worried about a short, weather-driven delay to the forecasted first salt on ship, compounded by weaker spot salt prices, but the fund sees both issues resolving themselves in time, which together with other project initiatives should see BCI positively contribute to the portfolio from here.

BCI Minerals, our largest holding, slipped a further 3 cents or almost 8% as the market unduly worries about a short, weather driven delay to forecasted first salt on ship, compounded by weaker spot salt prices. We see both issues resolving themselves in time.

— Ryder Capital, Monthly Report, May 2026

A unique salt project, largely de-risked

Ryder Capital, the third largest shareholder in BCI behind the Stokes family and AustralianSuper, described a company operating in the north-west of Western Australia, an area typically known for large iron ore developments, but BCI is on a different path, building a salt project that will be the first to come online in Australia in 30 years. Sandon Capital said construction of the Mardie Salt Project has been largely de-risked, with first salt shipments expected in the first half of CY27, seeing an attractive outlook for the regional industrial salt market given growing demand in Asia and limited new supply, expecting strong free cash flow from Mardie over the next three to five years to fund a subsequent sulphate of potash project.

Construction of BCI Minerals' Mardie Salt Project has been largely de-risked, with first salt shipments expected in the first half of CY27. We see an attractive outlook for the regional industrial salt market given growing demand in Asia and limited new supply, and expect strong free cash flow from Mardie over the next 3-5 years to fund the sulphate of potash project.

— Sandon Capital, Annual Report, August 2026

What fund managers say they are watching next is delivery of first salt shipments in the first half of CY27, whether spot salt prices recover as expected, continued strong free cash flow generation from Mardie funding the subsequent sulphate of potash project, and whether demand growth from Asia supports the industrial salt market outlook Sandon describes.