Mining Area C

Iron Ore – MAC Royalty’s cornerstone asset

Mining Area C 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, Mining Area C will form the largest operating iron ore hub in the world, producing 145 million tonnes of iron ore each year when the recently completed South Flank expansion reaches full production.

Royalty Agreement

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
• a series of 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.

Production for FY24

MAC reported production volumes of 124.6 million wet metric tonnes (mwmt) as the South Flank operations reached nameplate capacity on a run-rate basis.

North and South Flanks

Mining Area C has two major operations:

1. 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); and
2. The South Flank, achieved its first ore production in May 2021 and ramped up to full production capacity of 80 million wmtpa (100% basis) on a run-rate based in FY24.

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.