2013 will see the benefit of the increased royalty rates being applied to Kestrel sales.
Amapa Iron Ore, Brazil (1% GRR)
In Brazil, royalty receipts from the Anglo American Plc operated Amapa Iron Ore System ("Amapa") were GBP 2.2 million (2011: GBP 2.7 million) from circa 5.2 million tonnes of pellet and sinter feed sales. On January 4, 2013 Zamin Ferrous announced they had signed a binding agreement for the purchase of Amapa from Anglo American Plc (70%) and Cliffs Natural Resources Inc. (30%).
El Valle-Boinas/Carles Gold and Copper, Spain (2.5% NSR rising to 3% above $1,100 per ounce)
In Spain, receipts related to the royalty on the El Valle-Boinas/Carles ("EVBC") mine operated by Orvana Minerals Corp ("Orvana") were GBP 1.9 million (2011: GBP 0.3 million). The mine continues to build up to full production with a new 420 metre deep shaft commissioned during 2012. On January 4, 2013 Orvana announced a fiscal 2013 (year-end September, 2013) projected production for EVBC of 63,000 ounces of gold, 200,000 ounces of silver and 6 million pounds of copper.
The Group has a significant portfolio of pre-production royalties. During the year there were several positive announcements which encourage the Directors to believe that there is considerable upside to be unlocked.
Four Mile Uranium, South Australia (1% NSR)
On October 24, 2012, Alliance Resources Ltd announced the Four Mile Project start-up with in-situ recovery (ISR) mining operations commencing at Four Mile East in Q2 2013 and at Four Mile West in Q4 2013. Production guidance for 2013 and Q1 2014 is 2.128Mlb of uranium oxide and sales of 1.306Mlb with first sales expected in Q3 2013. For additional information please see www.allianceresources.com.au.
Ring of Fire Chromite, Canada (1% NSR)
On May 20, 2012, Cliffs Natural Resources Inc. announced that the Ring of Fire project would be advanced to the feasibility stage. The project is expected to produce up to 2.3 million tonnes of chromite concentrate per annum and is scheduled to start production in 2016. Additional information can be found at www.cliffsnaturalresources.com.
Jogjakarta Iron Project, Indonesia (Variable NSR)
Indo Mines Ltd ("Indo") announced on October 25, 2012 that the Indonesian Ministry of Energy and Mineral Resources issued a decree confirming approval of the application for the commencement of the construction phase of the Jogjakarta Iron Project within the Contract of Works area. Indo had previously announced the AMDAL Environmental Impact Assessment approval on February 1, 2012. The project will follow a staged implementation to achieve 2 million tonnes of iron concentrate production per annum before moving downstream into the manufacture of pig iron. Anglo Pacific holds a 2% NSR royalty which changes to a 1% NSR royalty once the principal is paid and the pig iron price is greater than $700 per tonne or remains at 2% if the pig iron price is less than $700 per tonne. For further information please see www.indomines.com.au.
Isua Iron Ore, Greenland (1% NSR)
On January 24, 2013, London Mining Plc announced that they had completed the Department of Minerals and Petroleum's permitting process requirements for the proposed 15 million tonnes per year Isua iron ore project in Greenland. London Mining Plc also announced they expected all required approvals to be completed in 2013. For further information on the project please see www.londonmining.co.uk.
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