Mining Area C
MAC iron ore – Deterra’s cornerstone asset
Location:
Pilbara, Western Australia
Operator:
BHP
Asset Stage:
Production
Commodities:
Iron Ore
Mine Type:
Open Pit
Royalty Key Terms:
1.232% of Iron Ore revenue + capacity payments
Asset Overview
Mining Area C (MAC) is located approximately 90km north west of Newman Township in the Pilbara region of Western Australia, one of the premier iron ore provinces in the world.
Operated by BHP, MAC is the largest operating iron ore hub in the world, producing 145 million tonnes of iron ore each year.
Royalty Overview
Deterra’s royalty agreement with BHP and its partners Itochu and Mitsui (the “MAC”) provides for a revenue-based royalty and production capacity payments consisting of:
- ongoing quarterly royalty payments of 1.232 per cent of Australian denominated revenue from the MAC Royalty Area; and
- one-off payments of AUD$1 million per million dry tonne increase in the annual production level from the MAC Royalty Area during any 12 month period ending 30 June above the previous highest annual production level.
MAC Production for FY25
MAC reported production volumes of 140.1 million wet metric tonnes (mwmt) as the South Flank operations reached and exceeded nameplate capacity during FY25. MAC has two major operations:
North Flank
The North Flank, which has been operational since 2003 with a history of consistent and growing iron ore production and current capacity of 65 million wet metric tonnes per annum (wmtpa).
South Flank
The South Flank, achieved its first ore production in May 2021 and exceeded nameplate production capacity of 80 million wmtpa (100% basis) in FY25.
The combined MAC mining hub is expected to operate for over 30 years ramping up to 145 million wmtpa to form the largest operating iron ore hub in the world.
Current MAC operations are expected to continue until ~2050, with the potential for further extension.
