Bungaroo South

BCI agreed to sell Bungaroo South to Mineral Resources Limited (ASX:MIN) in March 2020. Deferred consideration of A$14M is payable to BCI upon certain project milestones being achieved. BCI is also entitled to a 1% FOB revenue royalty on iron ore mined from Bungaroo South.

At the time of sale to MIN, Bungaroo South had Ore Reserves of 134Mt at 57.6% Fe. MIN is planning to develop Bungaroo South as part of its Ashburton Hub. 


BCI agreed to sell the Kumina tenements to MIN in October 2018 for total cash consideration of A$35M. The final A$4M deferred payment is due 12 months after first export of product from Kumina. Like Bungaroo South, MIN is planning to develop Kumina as part of the Ashburton Hub.   

Nullagine Royalty

In October 2016, BCI agreed to sell its 75% interest in the paused Nullagine Project to Fortescue Metals Group Limited (‘Fortescue’; ASX:FMG). BCI retains a royalty on 75% on all future iron ore mined from Nullagine of:

  • 0% to 2.0% of FOB revenue for ≥55% Fe iron ore; and
  • 50 to A$1.50 per tonne for <55% Fe iron ore, adjusted for 15% yield loss.

Fortescue will initially pay BCI 33% of the agreed royalty in cash, until the total amount waived by BCI equals A$7.5M. Thereafter, Fortescue will pay BCI 100% of the agreed royalty.

A 50% reduction in the royalty rate will apply to all iron ore mined above 15 million tonnes and a 75% reduction will apply to all iron ore mined above 25 million tonnes.

At the time of BCI's sale to Fortescue, the Nullagine Project had Ore Reserves of 21.6Mt. The mine could be restarted rapidly if Fortescue elects to do so.

Koodaideri South Royalty

Koodaideri South forms part of the larger Rio Tinto proposed Koodaideri mine in the Central Pilbara. BCI is entitled to a royalty of 2% of FOB revenue on any ore mined from the Koodaideri South project area.

At the time of sale to Rio Tinto, Koodaideri South had mineral resources of 106Mt at 58.6% Fe.

Extension Royalty

The Extension Project is owned by Maiden Iron Pty Ltd (formerly Australian Aboriginal Mining Corporation). BCI is entitled to a $1.75M cash payment 90 days after production commences and a royalty of 1.25% to 2.50% of FOB revenue on all iron ore produced.

At the time of sale to AAMC, Extension had mineral resources of 15.6Mt at 54.0% Fe.