Atlas Iron Limited (ASX CODE: AGO)
PARDOO MINING CONTRACT AWARDED TO CDE CAPITAL
Atlas Iron
Limited (ASX CODE: AGO) is planning to commence operations and export of iron
ore in October this year from its Pardoo Project located 75 kilometres east of
Port Hedland in the Pilbara of Western Australia. The company is
pleased to advise that it has now awarded the first of its key Pardoo Operations
Contracts, the Mining Contract, to CDE Capital Pty Ltd (CDE).
CDE is a privately owned, majority indigenous controlled, Northern
Territory based Mining and Civil contractor. Current operations include mining
contracts at Tanami Gold’s Coyote Mine, civil works and mining equipment
hire at CopperCo’s Lady Annie Mine and Plant and Labour Hire at
Xstrata’s MacArthur River Mine.
The Pardoo mining contract scope comprises the drill and blast,
excavation, and hauling of ore and waste at the Pardoo minesite over a period of
4 years.
CDE was selected from a competitive tender process managed by Atlas over
a six month period and facilitated by mining industry contract specialists
INTECH. The competitive tender process has also resulted in mining costs
consistent with those anticipated during the Pardoo Definitive Feasibility
Study.
“CDE Capital is a highly professional operator and a good fit for
our Company. They have a great track record in fostering indigenous business
enterprise in and around mining operations”, commented David Flanagan,
Atlas’ Managing Director. “We are focused on achieving the best
outcome in the communities where we operate and contract award to CDE within a
competitive tender process is an excellent result”, he added.
The mining contract agreed includes real performance incentives for the
contractor to achieve goals aligned with that of Atlas including;
·
achieving concrete
outcomes consistent with the Company’s native title agreement;
·
delivering ore for
blending consistent with the mine plan; and
·
implementing and
maintaining strong safety and human resource management systems.
Furthermore, the Company has the capacity within the contract to
implement the proposed Pardoo mine upgrade to 3 Mtpa, coincident with the
commissioning of the new Utah
berth public access port facility in late 2009.
Atlas is on target to award it’s “Road Train Haulage”
and “Crush and Screen” contracts to facilitate export of first ore
from Port Hedland in October 2008.
Background
Atlas is currently working to complete environmental approvals and
commence export of direct shipping grade (DSO) iron ore from its Pardoo Project
in October 2008. Together with additional export tonnages from Abydos the company is
targeting the export of 6 Mtpa by 2010 and 12 Mtpa by 2012 through Port
Hedland.
For further information please contact
David Flanagan, Managing
Director
Ken Brinsden, Operations Manager
Tel: (08) 9476
7900
` Tel: (08) 9476
7900
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