Australian iron ore development company BC Iron Limited has announced that it has completed the sale of its 75 percent interest in the Nullagine joint venture (NJV) to Australian miner Fortescue Metals Limited.
According to BC Iron’s statement, the completion of the sale has eliminated its ongoing costs and tenement commitments, as well as the existing environmental rehabilitation liability.
On October 10, 2016, BC Iron announced that Fortescue Metals had agreed to acquire its 75 percent interest in the joint venture for a value of A$1. The acquisition includes all assets and rehabilitation obligations of the Nullagine joint venture and Fortescue will pay BC Iron a royalty from sales of iron ore mined in the future which will be partially withheld, up to A$7.5 million, to offset obligations, including rehabilitation, assumed by Fortescue.