BCI Minerals (ASX:BCI) is still alive and kicking, and the company has now signed a Memorandum of Understanding with Sinosteel to cooperate towards bringing the Buckland iron ore project in production. Both companies will work towards binding agreements related to marketing and offtake deals, the engineering part and funding part of the construction phase of the project.
BCI Minerals was/is aiming to produce 15 million tonnes of iron ore per year at Buckland, which would be exported through a new port at Cape Preston East. This port – designed and proposed by BCI – would have a total export capacity of 20 million tonnes, so it would be able to ship more iron ore than just the Buckland ore. The original plan was to ship the 3M tpa ore from the Mardie Salt project via this port as well, which would leave an ‘open’ capacity of 2 million tonnes available for third parties.
BCI Minerals will be busy this year as it will complete a resource estimate at the Kumina deposit by the end of this quarter, where after a potential joint development scenario with Bungaroo South and Cape Preston East is supposed to be developed.