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May 17, 2019
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May 17, 2019
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Franco-Nevada

Bowen Basin (Coal)

Location: Australia, Rest of World
Operator: Peabody Energy / Pembroke Resources
Royalty: Production Payment

Effective January 31, 2018, Franco-Nevada purchased a royalty portfolio on tenements in the Bowen Basin coal region of Central Queensland for A$4.2 million. The royalty portfolio includes the southern and western portions of the Moorvale metallurgical coal mine operated by Peabody Energy Corporation. The Moorvale mine has been in production since 2003, and produced 2.2 million tonnes in 2017. The royalty rate is A$0.117 per tonne of coal mined. The royalty portfolio also includes the entire area of the Olive Downs Complex metallurgical coal mine development owned by Pembroke Resources Pty Ltd. The royalty rate of A$0.10 per tonne of coal mined is indexed to CPI adjustments from December 1997. Franco-Nevada received royalty revenue of approximately A$300,000 in 2018. In addition to the above royalties, the portfolio includes 33 other royalty agreements covering tenements in the Bowen Basin coal region.