Iron Ore producer Atlas Iron has entered into an agreement with mining firm BHP Billiton Iron Ore concerning access to its rail network and Port Hedland in the Pilbara region of Western Australia.
The agreement includes rail haulage on BHP's Goldsworthy line, which runs close to Atlas's Pardoo project and is considered to be the first step in a rail haulage agreement for the project.
The companies have agreed to an independent feasibility study to examine a multipurpose car and truck dumping hub near the Goldsworthy line, as well as the construction of a conveyor to the Utah Point stockyard.
If a deal is finalised, the use of the Goldsworthy line will offer cost benefits for Pardoo ore, and the access agreement may also help Atlas achieve its 12mtpa production target by the end of 2012.
Furthermore, the construction of a conveyor to transport ore into the Utah Point stockyards will allow Atlas to transport ore along the proposed private haul road and stockpile at a small distance from the port.
