BC Iron Limited is to sell its 75% interest in the Nullagine Joint Venture (NJV) to a subsidiary of Fortescue Metals Group Limited (Fortescue).

The two companies entered a binding terms agreement.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

NJV is an unincorporated joint venture between BC Iron and Fortescue with an ownership ratio of 75:25.

Nullagine mine temporarily suspended its operations in December 2015 after operating for more than five years consistently due to low iron ore prices.

"Nullagine has been a successful operation and BC Iron shareholders have extracted significant value from it over a number of years."

Since suspension of operations, BC Iron was considering various strategic options for Nullagine, including selling of its stake.

See Also:

Discussions were also held with various potential thirds-parties, with the final sale agreed with Fortescue.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The sale also includes 75% interest in the iron ore rights over the NJV tenements and 100% title in the NJV tenements.

In addition, the deal comprises existing fixed assets, equipment, low-grade stockpiles and all associated mining information.

As consideration for this sale, Fortescue will pay BC Iron a royalty on 75% of the future iron ore mined from Nullagine.

BC Iron chairman, Tony Kiernan said: “Nullagine has been a successful operation and BC Iron shareholders have extracted significant value from it over a number of years.

"BC Iron has now concluded that the sale to Fortescue offers the best potential from a future BC Iron value and risk perspective. We acknowledge the role played by Fortescue who have been on a journey with BC Iron from day one at the Nullagine project."

The sale is subject to regulatory approvals, various third-party consents and execution of formal documentation.