Atlas Iron Finds New Access Point for Shipments

Submitted by Jim Thesiger on 6 May, 2010 - 07:23

Atlas Iron (AGO), the Australia based iron miner has managed to find another access point after it was blocked from using the infrastructure of Fortescue Metals Group (FMG), for their shipments. It is to be mentioned that Fortescue have recently told Atlas that it will not be able to use the Anderson Point facility of Fortescue for shipments due to limited capacity. Previously Atlas struck an agreement with Fortescue Metals Group under which it won an access point owned by Fortescue Metals to carry out their shipments. Under the agreement Atlas, would be allowed to use the port until the new Utah Point facility located in Port Hedland was to become operational. According to Atlas, the miner got the permission from the port authority of Port Hedland under which the miner will be able to go for additional shipment between June and September this year.

It is to be mentioned that during this period, the miner is expected to go for one shipment per month and in each shipment it will be exporting 60,000 tonnes. Atlas is expected to have as much as 240,000 tonnes of ores available for shipments in the next four months. David Flanagan, the managing director of the company stated that the agreement with the Port Hedland Port Authority did not represent any increase in tonnage on what the company had planned to ship through the port of Fortescue. Mr. Flanagan stated that the access to Fortescue port would allow the miner to ship as much as half a million tonnes.

In his statement, the Atlas managing director also included that the deal with Fortescue is still on and Fortescue has the obligations to allow Atlas using their port if they had the capacity. It is to be mentioned that according to the market guidance of Fortescue, the company is suppose to ship as much as 40 million tonnes where the port has the capacity for 55 million. The miner claimed that it has plans to reach that limit.