Atlas Iron Limited (ASX Code: AGO)
ASX RELEASE 1 APRIL 2009
ATLAS SECURES 6 MILLION TONNES OF ANNUAL IRON ORE PORT CAPACITY
Atlas Iron Limited (ASX Code: AGO) is pleased to announce that it has been successful in securing additional berth capacity at the Utah Point public access port facility in Port Hedland.
Atlas is a foundation customer of the Utah Point facility and has previously secured 3Mtpa of annual capacity to underpin delivery of product from its Pardoo mine. Atlas has now been advised by the Port Hedland Port Authority that it has been allocated an additional 3Mtpa of capacity for the period from May 2010 to February 2012, increasing its total allocation to 6Mtpa. The agreement is subject to completion of formal documentation and prepayment by Atlas of the future stockyard and load-out charges at a rate of $1.79 per tonne.
Utah Point is currently under construction and is expected to be ready for first export of Atlas? Pardoo product by 1 April 2010, with full commissioning expected later that quarter.
?We have secured access to existing mine infrastructure via our recent deal with Talison Minerals and have now secured sufficient port capacity to underpin mine development in the Greater Abydos region and increase exports to 6Mtpa next year,? said Atlas Managing Director, David Flanagan. ?The economies of scale arising from increased production will make us a much more robust business and one which is well positioned for sustained growth in the years ahead.?
Atlas has an MOU in place with FMG which contemplates haulage and handling services for an additional 3Mtpa of iron ore exports from its tenements. Atlas is working to convert this to a binding agreement that will underpin further growth in export capacity.
Background on Atlas Iron Limited
Atlas is mining at its 100%-owned Pardoo Iron Ore Project, located 75 kilometres by road from Port Hedland, in the Pilbara of Western Australia and completed its first shipment of Pardoo DSO in early December 2008. Atlas is planning to export 1 million tonnes during its first 12 months of operations at the Pardoo Project, growing to 3 Mtpa following commissioning of the Utah Point port facility. When combined with additional export tonnages from Abydos, the Company is targeting exports at an annualised rate of 6 Mtpa by 2010, growing to 12 Mtpa by 2012.
For further information please contact
David Flanagan - Managing Director or Mark Hancock ? Chief Financial Officer 08 9476 7900
READ CORPORATE
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