Fortescue acquires BC Iron’s 75 percent interest in the Nullagine JV

Australian miner Fortescue Metals Limited has announced that it has agreed to acquire Australian iron ore development company BC Iron Limited’s 75 percent interest in the Nullagine joint venture (NJV) for a value of A$1. The company stated that it will assess the viability of restarting operations having regard to ongoing market conditions. The acquisition includes all assets and rehabilitation obligations of the Nullagine joint venture. 

According to Fortescue’s statement, it 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.