Franco-Nevada has a 4.1% equity interest in Falcondo Dominicana, C. por A. (“Falcondo”). Xstrata plc (“Xstrata”) has an 85.26% equity interest and government agencies of the Dominican Republic own most of the balance. Franco-Nevada receives revenue from Falcondo only through discretionary dividend distributions on its shares. Falcondo is a ferronickel surface mining operation located in the Dominican Republic with operations dating since 1971. Ferronickel is a combination of iron and nickel used by the stainless steel industry. It is sold to the stainless steel industry in the form of ferrocones containing roughly 40% nickel and 60% iron. Falcondo uses an integrated complex of four mines, smelter, crude oil supply system, oil refinery and 200 megawatt power plant and has a capacity of 29,000 tonnes of nickel contained in ferronickel per annum. Operations were suspended in August 2008 in response to the global economic downturn. In October 2010 Falcondo began restart activities with a plan to reduce costs by using procured electricity and the continued use of naphtha for metallurgical reduction. Xstrata expects production to ramp up to 50% of capacity, or approximately 14,000 tonnes per annum of nickel in ferronickel, by March 2011 with approximately 850 employees. The project to convert the long-term energy source for Falcondo’s process plant from oil to natural gas to enable the operation to reach 100% of capacity will continue in conjunction with the partial resumption of operations. Xstrata reported that, as at June 30, 2010, proven reserves were 49.6 million tonnes grading 1.21% nickel and probable reserves were 29.7 million tonnes grading 1.36% nickel. The indicated mine life is more than 20 years at full production and with growth potential.