BlackRock moves into mining royalties

Asset management firm BlackRock World Mining Trust is to buy a small stake in London Mining's Marampa licence in Sierra Leone.

Asset management firm BlackRock World Mining Trust is to buy a small stake in London Mining's Marampa licence in Sierra Leone.

Blackrock will acquire a two per cent revenue-related royalty from any iron ore sales over the life of the mine, paying $110m in cash. The transaction will be immediately earnings-enhancing and gives Blackrock direct long term commodity price exposure to iron ore whilst avoiding mining sector cost inflation.

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