Iluka Resources (ASX:ILU) flags demerger of BHP iron ore royalties

Company News

by Rachael Jones

Iluka Resources (ASX:ILU) reports today that they are looking to review the corporate and capital structure of Iluka’s two principal businesses – mineral sands operations and the Mining Area C royalty (MAC).

The company is considering a structural separation of MAC by way of demerger.

MAC’s earnings contribution to Iluka will ultimately be dependent on a range of factors including iron ore pricing and the USD:AUD exchange rate.

BHP has stated that, with the development of South Flank, the intended capacity from the expanded MAC hub will increase dramatically.

Shares in Iluka Resources (ASX:ILU) trading 3.2 per cent higher at $9.09.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.