IO price on increase, page-37

Nah SW, its never been reported - only vague guidelines. The agreement would be CinC.

Here you go -

"The IV Agreement includes the following key terms:
(i) The term of the arrangement with MIN, subject to extension by agreement, is
the lesser of 20 years or 200 million tonnes of product purchased by MIN.
(ii) MIN is to develop the mine at MIN’s cost within 6 months from all required
approvals being secured. The development milestone is on track to be
achieved in Q1 FY2015.
(iii) A production ramp up to a minimum of 4 Mtpa is anticipated within 2-3 years.
(iv) MIN is to operate the mine at MIN’s cost, pay to IOH a mine gate payment
and take ownership of the mined tonnes at the Iron Valley mine gate.
(v) Iron Valley Pty Ltd, a 100% owned subsidiary of IOH, remains the tenement
owner and will make necessary statutory payments to keep the tenements in
good standing. IOH is also responsible for making royalty payments to third
parties and the State Government associated with the tonnes of iron ore that
IOH sells to MIN.
(vi) The mine gate price and the minimum tonnage purchase obligations are
each structured in a manner that provides appropriate protection to the
parties against agreed operational and economic conditions, while ensuring
the parties also share in the upside of higher iron ore prices. The parties may
suspend production under agreed circumstances including certain pricing
and operating cost conditions.
(vii) MIN will pay the mine gate payment to IOH on a quarterly basis. The
payment will be based on the tonnage of product removed from the Iron
Valley tenement during the quarter and an agreed confidential percentage
rate of the average invoiced FOB Iron Valley price for the quarter (or a
published index price, where removed Iron Valley ore is not sold by MIN
during the relevant quarter). The percentage rate is tiered, and increases
corresponding to higher Iron Valley FOB sale prices.
(viii) The IV Agreement includes a mechanism whereby the parties would share
on an agreed proportionate basis the benefit of any actual operating cost
savings derived from a lower cost logistics solution for the transport of Iron
Valley ore.

As an indication of potential value for IOH, assuming long term average Iron Valley
FOB received prices between $90 per tonne and $110 per tonne, and production
from 4 Mtpa to 7.5 Mtpa, the potential annual earnings that could flow to IOH could
range from approximately $20 million (assuming the lower price and production
rate) to more than $75 million (assuming the higher price and production rate and
benefits of lower cost logistics solutions). All forecast earnings are particularly
sensitive to key variables such as volatility in the iron ore market, foreign exchange
rates and actual annual production tonnages achieved from the Iron Valley mine.
Naturally, IOH cannot control or guarantee these key variables which will ultimately
determine the earnings actually derived by IOH under the IV Agreement."


There have been slight amendments to it of course which have been notified in general terms to the market, but it's essentially as above.

IV is not Bci's major concern - it will bubble along and provide them with a safety net.

NJV is where the concerns are.....

GLTAH.