McAleese halts trading after Atlas Iron announces mine closures

The fall out of Atlas Iron’s decision to shut its mines continues, with transport contractor McAleese entering a trading halt.

Atlas Iron was a key contract for McAleese, which transports iron ore by truck from the Pilbara mines to Port Hedland.

SMH reports that McAleese had expected the contract with Atlas to make up around 40 per cent of its 2015 earnings.

Atlas has decided to shut its Pilbara mining operations as a result in the diving price of iron ore.

Mining and crushing will cease at its mines by the end of April.

As a result, McAleese said it needed to halt trading while its considers and reviews the operational and financial implications and various commercial scenarios that could eventuate as a result of Atlas’ decision.

McAleese said it expects the trading halt to remain in place for 10 days.

"McAleese Group has a strong and long-standing partnership with Atlas and will continue to work constructively with the Pilbara based miner as a priority to achieve outcomes in the interest of the company's people and business,” the company said.

The flow-on effect the mine closures will have was highlighted this morning with mining contractor MACA announcing its revenue guidance would be impacted by the lost contract.

The contract at Atlas' Abydos mine for both mining and crushing services generated between $4 million to $5 million per month for MACA.

In an ASX statement this morning, the company said as a consequence of the contract suspension its full-year revenue guidance for the 2015 financial year will be $600 million.

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