ASX Announcement 22 December 2014
Atlas Welcomes Government's Royalty Relief Announcement
Atlas Iron Limited (ASX: AGO) has welcomed the announcement by the State Government that it will provide royalty relief in the form of a 50% rebate on eligible haematite iron ore royalties for up to 12 months, subject to the iron ore price remaining below an average of $A90 per tonne over the period.
Atlas Managing Director, Ken Brinsden confirmed that while more detail was expected to be made available shortly, Atlas would progress discussions with Government to achieve the rebate within the current quarter. Any concessions provided within the 12 months assistance period are expected to be fully repayable over a period of up to two years thereafter, in accordance with a schedule to be negotiated between the producer and the Minister for Mines and Petroleum.
Mr Brinsden said, "Atlas has worked throughout the calendar year to quickly reposition its cost base in light of the changing iron ore market conditions. Measures like this royalty relief package from the Western Australian State Government, together with ongoing innovative thinking from our employees, contractors, and other service providers, are powerful and they demonstrate the strength of the enabling environment available to support Atlas and the junior iron ore sector in Western Australia.
"The savings that may stem from this proposed initiative would help to ensure Atlas remains competitive during this iron ore price downturn and can therefore continue to create jobs and generate royalty revenue for the Government for many years to come" he added.
Atlas and the other junior iron ore miners play an important part in monetising assets that would not otherwise typically be mined by the iron ore majors. Atlas has paid more than $200 million in royalties since it commenced mining in 2008 and approximately 650 people are currently employed operating and supporting its 3 Pilbara mine sites and port operations.
Investor Enquiries:
Atlas Iron +61 8 6228 8000
Ken Brinsden, Managing Director
Media Enquiries:
Read Corporate +61 8 9388 1474
Paul Armstrong +61 421 619 084
Atlas Iron Limited
ABN 63 110 396 168
Raine Square, Level 18
300 Murray Street Perth WA 6000
PO Box 7071
Cloisters Square Perth WA 6850
P: +61 8 6228 8000
F: +61 8 6228 8999
E: [email protected]
W: www.atlasiron.com.au