Iluka considers demerger
WITH the development of BHP’s South Flank well underway, Iluka Resources is considering a demerger of the royalty it pockets from BHP’s Mining Area C (MAC). The development of South Flank means the capacity of the expanded MAC hub will sit at around 145 wmtpa from 2023 onwards and would equate to an increase in annual iron ore production (within the MAC royalty area) from around 55 million dmtpa to 135 million dmtpa. With this increase in production (and cash flow), it’s a no-brainer for Iluka to seriously consider a structural separation of MAC by way of demerger. Iluka managing director Tom O’Leary said that the MAC area is a high grade, low cost iron ore asset with a tier…