Atlas happy with port access

Atlas Iron has confirmed a deal with Fortescue Metals that it says will give it sufficient port access to maintain exports.

Up and coming Western Australian iron ore producer Atlas Iron has confirmed a deal with Fortescue Metals that it says will give it sufficient port access to maintain exports.

The deal will see Atlas allowed access to Fortescue’s Port Hedland port facility for its Pardoo Direct Shipping Ore (DSO) Project until 30 June 2010 and until the Utah Point public access berth is commissioned on a reasonable best endeavours basis, Atlas said in a statement yesterday.

The Pardoo operation is located 75 kilometres by road from Port Hedland and completed its first shipment of Pardoo DSO in early December 2008.

According to managing director David Flanagan, Atlas is targeting exports of one million tonnes during its first 12 months of operations at Pardoo, before expanding following commissioning of the Utah Point port facility.

After combining additional export tonnages from its Abydos and Wodgina DSO projects, Atlas is aiming annual exports of 6 million tonnes in 2010, before growing to 12 million tonnes by 2012.

Atlas has also recently announced the proposed merger with Warwick Resources, with the combined company targeting additional production of 14 million tonnes per year from Atlas’ and Warwick’s South East Pilbara projects by 2014.

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