New miner Atlas Iron has secured additional berth capacity at the Utah Point public access port facility in Port Hedland, which is currently under construction.
New miner Atlas Iron has secured additional berth capacity at the Utah Point public access port facility in Port Hedland, which is currently under construction.
In a statement today, Atlas said it was secured an additional 3 million tonnes per annum of annual capacity from between May 2010 and February 2012.
The iron ore miner had already secured 3mtpa.
The agreement is subject to formal completion of documents and prepayment by Atlas of the future stockyard and load-out charges at a rate of $1.79 per tonne.
"We have secured access to existing mine infrastructure via our recent deal with Talison Minerals and have now secured sufficient port capacity to underpin mine development in the Greater Abydos region and increase exports to 6Mtpa next year," managing director David Flanagan said.
"The economies of scale arising from increased production will make us a much more robust business and one which is well positioned for sustained growth in the years ahead."
He added that the company is currently working to convert a memorandum of understanding (MoU) with Fortescue Metals Group into a binding agreement that will underpin additional export capacity.
The current MoU covers haulage and handling services for an additional 3mtpa of iron ore exports from Atlas' tenements.
The announcement is below:
Atlas Iron Limited (ASX Code: AGO) is pleased to announce that it has been successful in securing additional berth capacity at the Utah Point public access port facility in Port Hedland.
Atlas is a foundation customer of the Utah Point facility and has previously secured 3Mtpa of annual capacity to underpin delivery of product from its Pardoo mine. Atlas has now been advised by the Port Hedland Port Authority that it has been allocated an additional 3Mtpa of capacity for the period from May 2010 to February 2012, increasing its total allocation to 6Mtpa. The agreement is subject to completion of formal documentation and prepayment by Atlas of the future stockyard and load-out charges at a rate of $1.79 per tonne.
Utah Point is currently under construction and is expected to be ready for first export of Atlas' Pardoo product by 1 April 2010, with full commissioning expected later that quarter.
"We have secured access to existing mine infrastructure via our recent deal with Talison Minerals and have now secured sufficient port capacity to underpin mine development in the Greater Abydos region and increase exports to 6Mtpa next year," said Atlas Managing Director, David Flanagan. "The economies of scale arising from increased production will make us a much more robust business and one which is well positioned for sustained growth in the years ahead."
Atlas has an MOU in place with FMG which contemplates haulage and handling services for an additional 3Mtpa of iron ore exports from its tenements. Atlas is working to convert this to a binding agreement that will underpin further growth in export capacity.
