Atlas Iron Limited (ASX:AGO) Enters Into Infrastructure Memorandum of Understanding with BHP Billiton (ASX:BHP)
Perth, Nov 18, 2010 AEST (ABN Newswire) - Atlas Iron Limited (
ASX:AGO) (Atlas) today announced that it has agreed to enter into good faith discussions with BHP Billiton Iron Ore (ASX:BHP) (NYSE:BHP) concerning an integrated transport solution in Port Hedland.
Atlas Iron and BHP Billiton Iron Ore have agreed to consider point to point rail haulage on BHP Billiton's declared Goldsworthy line to the junction of BHP Billiton's Newman rail line.
The companies have agreed to an Independent Feasibility Study examining a multi-purpose ore car and truck dumping hub on the eastern side of the Goldsworthy junction and the construction of a conveyor to bulk stockyards at Utah Point in Port Hedland.
The Western Australian Government has been advised of these plans.
BACKGROUND ATLAS IRON LIMITED
Atlas is currently undertaking a Definitive Feasibility Study on its Turner River Hub (TRH) project to establish a centralised processing and haulage point to further increase its production rate from 6mtpa to 12mtpa by 2012. It is intended that the centralised plant would blend and process ore from 3 of Atlas' 4 North Pilbara iron ore projects (Wodgina, Abydos and Mt Webber) in preparation for transport to Utah Point via private haul road.
This independent study will contemplate new options not previously available to Atlas, with the potential to deliver significantly improved efficiencies in ore handling systems.
Atlas will continue with its Turner River Hub Definitive Feasibility Study in parallel with the proposed Independent Feasibility Study, both due for completion by June 2011.
About Atlas Iron Limited
Atlas Iron Limited (ASX:AGO) is an independent Australian iron ore company, mining and exporting Direct Shipping Ore (DSO) from its operations in the Northern Pilbara region of Western Australia. Since listing on the ASX in late 2004, Atlas has grown rapidly and is now a member of the ASX100 index.
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