IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Australia-based BCI Minerals said on Tuesday it would sell high-purity salt from its Mardie project on the Pilbara coast to Japanese trading house Itochu Corp.
The salt and potash mineral explorer, backed by local businessman Kerry Stokes, will supply Itochu with a minimum of 3,600 kilotonnes (kt) of salt over five years from 2026.
“BCI looks forward to supplying Itochu with high-purity Mardie salt and welcoming Itochu as a preferred trading partner for Japan, Korea and Taiwan,” managing director David Boshoff said in a statement.
Earlier this month, BCI told investors that it now expected the Mardie salt and sulphate of potash project to cost about A$1.63 billion ($1.09 billion), including A$208 million contingency reserve.
Itochu, one of the five major Japanese trading houses in which Warren Buffett’s Berkshire Hathaway recently raised its stake, shall purchase 500 kt of salt each during the first two years, 600 kt in the third year and 1000 kt in the last two years.
The obligations of both parties are conditional until the commissioning of the Mardie project infrastructure by the first quarter of 2023.
($1 = 1.4984 Australian dollars)
(By Rishav Chatterjee; Editing by Subhranshu Sahu)
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