Operator

Vale S.A.

Terms

0.04% Net Fe Sales Royalty (after threshold)

Acquisition Date

2021 / Jun / 29

The Vale Southeastern System is comprised of three complexes: Itabira, Minas Centrais and Mariana. The system is located in the Minas Gerais state of Brazil and is fully integrated with mines, railroads, maritime terminals and a port. The mineralization at the Southern System has high ratios of itabirite ore relative to hematite ore type. Itabirite ore has iron grades of 35-60% and hematite ore has iron grades around 65%.

Production in the Southeastern System started in 1957 at the Itabira complex, which is currently expected to run through the early 2030s. Minas Centrais started production in 1994 and is expected to produce through the late 2050s and Mariana began production in 1976 and is expected to produce through the mid 2050s.

In 2020, the Southeastern System produced 57 million tonnes (“Mt”) of iron ore. Production capacity is expected to increase to 101 Mt by the end of 2022, from current levels of 77 Mt in 2021.

Sandstorm’s royalty covers a portion of the Southeastern System after a cumulative threshold is met (currently expected in 2024). Sandstorm estimates the royalty will cover approximately 70% of the Southeastern System production after the threshold is triggered.

 

Acquisition Presentation

Southeastern System

 

Southeastern System Royalty Map
Southeastern System Royalty Map

 

Acquisition Video