Independent Pilbara Rail Study to Progress to Next Stage
Perth, April 5, 2013 AEST (ABN Newswire) - Atlas Iron Limited (ASX:AGO) (PINK:ATLGF) is pleased to announce that the first phase of the rail Alliance study with Aurizon Operations Limited and Brockman Mining Limited (ASX:BCK), has been completed. The study sought to provide a preliminary evaluation of a new, independent, multi-party railway to connect iron ore mines in the East Pilbara to Port Hedland.
The Alliance study conclusions demonstrate the merits of a new, standard-gauge railway in the East Pilbara, connected to dedicated port facilities at Port Hedland that aggregates production from a number of operating and prospective miners, including Brockman and Atlas.
As a result, the parties have extended the existing Alliance Study Agreement to 1 July 2013, to examine the integration of the East Pilbara rail development and the proposed North West Infrastructure port development in South West Creek in Port Hedland.
This recognises the synergies that can be achieved across the supply chain and forms the basis for the next stage of evaluation being an integrated rail and port pre-feasibility study. The Alliance participants are finalising the scope and timing of a pre-feasibility study for the combined port/rail project.
Atlas Managing Director Ken Brinsden said that "As a result of this first phase of study, Atlas has learnt much about the economics of a new independent rail solution, and for that matter the part independent infrastructure options have to play in the broader Pilbara landscape. The results of the joint study support our view that an infrastructure solution for junior miners in the Pilbara is viable and could be realised, to the benefit of all of our stakeholders, including the local Port Hedland community and the State of Western Australia".
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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.
Brockman Resources Limited
Atlas Iron Limited