Posted in | News | Iron Ore | Zircon | Earnings

Iluka Resources Gets Massive Boost from BHP Royalties

Iluka Resources survived the global financial crisis on the basis of its mining royalties from BHP Billiton.

The company, the world’s largest zircon producer, has been receiving royalty on the iron ore output of BHP Billiton’s West Australian operations in Mining Area C. These may be worth as much as Australian $1.5 billion based on the valuations of similar companies.

The company has been considering a ‘spin-off’ to gain from the royalties since 2009 but nothing has come of it as yet. The Managing Director of Iluka resources, David Robb said that valuations of the North American gold royalties, when applied to Iluka's royalty over about one-third of BHP's West Australian output, doubled the $700 million the market currently valued the asset at.

The figures were based on an appraisal of similar companies in North America. Franco-Nevada is a Canadian company which is a pure mining royalty company. Iluka Resources is contemplating a similar spin off company that has a life of its own.

However as per Mr Robb the review was still an in house consideration and there was no time frame for such a decision to be made. A potential listing in North America has been on the cards for almost two years now.


Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Chai, Cameron. (2019, February 18). Iluka Resources Gets Massive Boost from BHP Royalties. AZoMining. Retrieved on April 16, 2024 from

  • MLA

    Chai, Cameron. "Iluka Resources Gets Massive Boost from BHP Royalties". AZoMining. 16 April 2024. <>.

  • Chicago

    Chai, Cameron. "Iluka Resources Gets Massive Boost from BHP Royalties". AZoMining. (accessed April 16, 2024).

  • Harvard

    Chai, Cameron. 2019. Iluka Resources Gets Massive Boost from BHP Royalties. AZoMining, viewed 16 April 2024,

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.