The growth will transform not only Atlas’ production, but will
give it cash flow and a financial base from which it can undertake
further substantial acquisitions and extensive exploration.
At time of publication, Atlas was in the throes of examining
its rail options. As part of this process, it has entered into a
binding Memorandum of Understanding with QR National to
progress the feasibility of an independent railway in the Pilbara.
The proposed Pilbara Independent Rail (PIR) project would
connect iron ore deposits owned by Atlas and other companies
in the east and south-east Pilbara to Port Hedland. The study is
expected to be completed by the end of this calendar year, with
first haulage earmarked for as early as 2015.
The use of rail transport is aimed at enabling Atlas to take full
advantage of its highly valuable port capacity.
Port capacity is a crucial piece of the iron ore jigsaw. It is
limited, it is valuable – and Atlas has a substantial slice of it. Due
to a combination of prudent planning and strategic acquisitions,
Atlas’ capacity within the highly prized Port Hedland inner
harbour, from where BHP Billiton ships its iron ore, stands at
46.5
million tonnes a year.
“
This port capacity will enable Atlas to adopt an aggressive
expansion strategy that will see the company develop three
new mines in 2012-13: Mt Dove, Abydos and Mt Webber,”
Atlas Managing Director Ken Brinsden says. “These projects, in
combination with Atlas’ existing mines at Wodgina and Pardoo,
will lift production from the current rate of 6 million tonnes per
annum (Mtpa) to 12Mtpa by next year.
“
These mines will also underpin a further production increase
Atlas Iron poised for next phase of growth
KEN BRINSDEN
MANAGING DIRECTOR
ATLAS IRON LTD
Atlas Iron, the Australian iron ore miner which is already highly
regarded in investment markets for its remarkable record of strong
cash flow, rapid expansion and low capital costs, is about to embark
on another journey of substantial growth.
Atlas’ production in the world-class Pilbara iron ore province
of Western Australia is set to soar from six million tonnes a year
currently to as much as 46 million tonnes a year within five
years. This spectacular increase, which observers say will make
Atlas one of the fastest growing iron ore companies in the world,
will be underpinned by the company’s use of rail transport for the
first time.
Under the plan Atlas will double production to 12 million tonnes
next year. This will be achieved through the development of two
new mines, Mt Dove and Abydos, taking its total number of mines
to four.
And then the game will change significantly – again. Atlas
plans to use rail to help transport its ore to the Port Hedland
port. This pivotal point in Atlas’ evolution will also allow the
company to develop several new mines, including those in the
south-east Pilbara, giving it full access to its one billion tonne
resource inventory.
Atlas Iron’s operations in the Pilbara
MINESITE 2012
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