Iluka flags $2b demerger of BHP iron ore royalties

Brad ThompsonReporter

Oct 31, 2019 – 9.43am

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Key shareholders are convinced the time is right for mineral sands miner Iluka Resources to spin off a lucrative iron ore royalty it reaps from BHP in a move expected to unlock more than $2 billion in value.

Iluka said on Thursday that it was considering a demerger of the royalty it earns from BHP’s Mining Area C (MAC), which is set to skyrocket when the new $US3.6 billion ($5.2 billion) South Flank iron ore mine in Western Australia begins production from 2021.

Brad Thompson writes across business and politics from Western Australia for The Australian Financial Review. Brad is based in our Perth bureau.