McAleese extends trading halt as talks with Atlas Iron continue

Transport contractor McAleese said it has had a number of constructive discussions with Atlas Iron which could lead to supporting ongoing mining and haulage activities from Atlas’ mines.

Atlas decided to close its Pilbara mines earlier this month in light of the falling iron ore price.

Just three days later, McAleese called a trading halt amid reports the company expected the contract with Atlas to make up around 40 per cent of its 2015 earnings.

In a statement to the ASX yesterday, McAleese requested an extension to the halt for five more business days.

It said discussions with Atlas and its stakeholders on a range of commercial scenarios with a view to supporting  mining and haulage actives were ongoing.

The iron ore price has seen an impressive recovery since Atlas decided to shut up shop, rising 23 per cent to last trade at $US57.80 a tonne.

The Australian reports Atlas contractors McAleese, Maca and Qube Logistics have offered to forgo some of their payments in order to keep the iron ore miner afloat.

This would mean the contractors would share in some of Atlas’ profit if the iron ore price recovered to a point where mining was viable for the company.

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