Atlas extends FMG port access deal

KATE EMERY, The West Australian November 4, 2009, 9:21 am
David Flanagan

Kalgoorlie Miner / Travis Anderson ©

Atlas Iron has extended its port access deal with Fortescue Metals Group to enable its second Pilbara mine to come into production on schedule.

The David Flanagan-headed iron ore miner will use Fortescue's port to export ore from its Wodgina mine from the first quarter of 2010 before moving to the State Government's multi-user berth at Utah Point.

A port access deal between the two groups had originally been intended to cover only Atlas' first year of production and lapse in late 2009. The variation would carry through until June, Mr Flanagan said yesterday.

The move comes after Utah Point slipped behind schedule, with first ore now expected to be shipped in late June.

Atlas is targeting a three million-tonne-a-year operation at Wodgina, 100km south of Port Hedland, which will become its second iron ore mine behind its flagship Pardoo project.

Wodgina ore would be stockpiled using existing infrastructure from Talison Minerals' nearby tantalum mine before being transported by road to Fortescue's Anderson Point port, according to documents filed with the Department of Environment

Shares in Atlas closed 1ยข higher at $1.73.

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