Atlas and Aurox agree to terms in Port Hedland

Atlas Iron and Aurox resources have struck a deal to share new shipping berths at Utah Point in Port Hedland.

Western Australian miners Atlas Iron and Aurox Resources have successfully struck a capacity allocation sharing deal over proposed new shipping berths at Utah Point in Port Hedland.

The deal will see Atlas provide Aurox with a 12 month interest free loan of $13.86 million in order to pay the facility charge to the Port Hedland Port Authority before 31 March, while Aurox will allow Atlas to use any of its unused or surplus berths, ship-loading and stockpiling capacity expected to be available from 1 March, 2012.

In addition, the iron ore miners have agreed to share equally any capacity allocation to which Aurox becomes entitled in excess of its current allocation.

Atlas managing director David Flanagan said that the deal will ensure the most efficient use of the Utah Point port facility while allowing both companies full access.

“This is a great example where the Pilbara’s iron ore juniors are working together to ensure publicly available infrastructure is fully utilised for the maximum benefit of the State, the community and the shareholders of each company,” he said.

“This port cooperation agreement helps ensure that in aggregate 9Mtpa from 1 March 2012, and then 13Mtpa of product from 2015, can be exported by Atlas and Aurox through the Utah Point port facility.”

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