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| | | | The activities of Anglo Pacific Group plc are summarised as follows: Mineral Royalties Coal The Group, via its wholly owned Australian subsidiary Gordon Resources Limited, own 50% of mining and mineral rights which entitle it to coal royalty receipts from the Kestrel and Crinum mines, located in Queensland, Australia (other than Crown areas). These mines are operated by Rio Tinto Coal Australia and BM Alliance Coal Operations Pty Ltd (a 50/50 joint venture between BHP Billiton and Mitsubishi), respectively. The royalty rate to which the Company is presently entitled is prescribed by the Queensland Mineral Resources Act Regulations. These regulations currently stipulate that the basis of calculation is a two-tiered fixed percentage of the invoiced value of the coal, without deduction for any costs pertaining to rail and road freight or any other costs incurred in relation to the sale or disposal of the coal other than port and related charges. The regulations provide that currently a 7% rate applies to the value of coal produced by a mine sold below A$100 per tonne and a higher 10% rate applies to the value of coal sold above A$100 per tonne. Uranium The Group owns a 1% net smelter royalty over the Beverley Four Mile Uranium project in South Australia. The Group owns a 1% net smelter royalty over the Salamanca Uranium project in Spain, which is currently being developed by Berkeley Resources Ltd. The Group also owns a number of royalties over various tenements in the Athabasca basin which are currently being explored by a number of listed and unlisted exploration companies. Gold The Group owns a 2.5% net smelter royalty on the producing Engenho mine in Brazil which is operated by Mundo Minerals Ltd. The Group also owns a 2.5% variable net smelter royalty on Northern Star Mining Corporation's Midway and McKenzie Break properties in Quebec, Canada. In addition, the Group owns a 2.5% escalating net smelter royalty on the El Valle and Carles mine in Spain, which is currently being developed by Orvana Minerals Corporation. Iron Ore and Iron Sands The Group owns a 1.5% GRR covering three exploration licences in the central Pilbara region of Western Australia, currently owned and operated by BHP Billiton. The Group also owns a 2% variable net smelter royalty on the Jogjakarta Iron Sands Project located in Indonesia, which is currently being developed by Indo Mines Ltd. Mining and exploration interests
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