Iron Valley is an operating mine located in the Central Pilbara, which is being operated by Mineral Resources Limited (“MIN”) under royalty-type agreement. As at 30 June 2017, Iron Valley’s Mineral Resource was 229.9Mt at 58.4% Fe and its Ore Reserve was 113.0Mt at 58.7% Fe (refer here for more details).

Iron Valley commenced exports in October 2014 and is generating royalty-type earnings for BCI. MIN operates the mine entirely at its cost and purchases Iron Valley product from BC Iron at a price linked to MIN’s realised sale price. BCI retains ownership of the tenements and certain statutory obligations, including payment of royalties.

Iron Valley is a relatively simple DSO operation which produces both lump and fines, which are hauled to Port Hedland utilising road trains and exported via Utah Point. MIN shipped 8.0M wmt of Iron Valley product during FY17, which generated revenue for BCI of A$63.5M and EBITDA of A$18.3M. Iron Valley has a mine life of approximately 15 years based on current production rates

MIN is assessing a range of improvement initiatives which have the potential to benefit both parties, including an innovative transport solution known as the“bulk ore shuttle system” or “BOSS”. The implementation of BOSS which enhance the long term viability of the Iron Valley operation and has the potential to double production rates and BCI’s royalty.