Mt Keith, Western Australia
| Royalty: | 0.25% NPI 0.375% GR |
|---|---|
| 2009 Revenue: | $720,000 |
| Operator: | BHP Billiton Limited |
Franco-Nevada owns both a 0.375% GR royalty and a 0.25% NPI on lands including the Mt Keith nickel operation in Western Australia. The 0.375% GR royalty was acquired by Franco-Nevada effective September 1, 2009 for A$20m. Mt Keith is a large, low-grade disseminated sulphide ore body and the world’s largest open pit nickel mine operated by BHP Billiton Ltd. (“BHP”). Mt Keith has a mining rate of approximately 40 million bcm/annum. Concentrator ore throughout is approximately 11.5 million tonnes/annum with 60-70% recoveries. The production capacity is 35-40,000 tonnes/annum of nickel in concentrate, at approximately 20% nickel grade. Mining commenced in 1993 with the first nickel concentrate produced in 1994. Reserves and resources at Mt Keith are prepared based on the JORC classification system. Resources at June 30, 2009 were reported by BHP to be 361 million tonnes grading 0.52% nickel and 24 million tonnes grading 0.52% nickel and Reserves were reported to be 129 million tonnes grading 0.57% nickel and 24 million tonnes grading 0.53% nickel in the open-cut and stockpile, respectively. BHP reported that Mt Keith has an estimated mine life of 15 years. In 2009, total revenues were $720,000, an increase from the previous year due to the acquisition of the 0.375% GR during the year.
