Coca-Cola Amatil had a number of coal assets, including one in Queensland... but Glencore alleges that the iconic soft drink maker doesn't own that site.
👉 Background: You probably know Coca Cola Amatil as the local makers of the iconic soft drink that we all love cracking open in Summer. But Coca-Cola Amatil has also dabbled in tobacco, snack foods, packaging and mining in the past.
👉 What happened: In fact, Coca-Cola Amatil actually had a number of coal assets which date back to the early 1900’s, including one in Queensland. Glencore, which is Australia’s largest coal producers, has been paying royalties to Coca Cola Amatil for access to this QLD site since 2009.
👉 What else: Turns out, Glencore now alleges that Coca Cola doesn’t actually own that site, instead the Queensland government does. And they want their royalty money back - all $80 million of it.
💡A royalty is a payment made to a person or company to use their assets, their natural resources or their copyrighted work.
💡Mining companies pay royalties to whoever owns the land they’re mining on. This way the owners also make some cash from the natural resources under their land.
💡Another example of a royalty is payments made to musicians each time their song is played on the radio or TV. And so, Taylor Swift is making a hell of a lot of money right now!
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