BHP

Royalty Holder…….Iluka Resources
Revenue……………..…..…………….$67m
Mine Life...……………….20 years plus
Commodity……………………….Iron Ore
Operator……………………..BHP Billiton

#12 Mining Area C

Mineral sands miner Iluka Resources produces zircon and rutile in Australia and the US, but after a land package deal in 1977, the company also carries a royalty over BHP Billiton's flagship iron ore asset, known as “Mining Area C”.

The royalty is equal to 1.232 per cent of revenue, with additional bonus payments when new production records are met. Would-be suitors say Iluka is unwilling to part with the asset, which is a bedrock of cash flow for the company, generating a thumping $67m in 2014.

Undoubtedly, the royalty accounts for a princely portion of Iluka's A$3.1bn ($2.2bn) market cap.

 

 

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