Pilbara rail deal possible: Atlas

Junior iron ore miner says flurry of Pilbara deals strengthens its position.

Junior iron ore producer Atlas Iron has insisted that a recent flurry of deals between small iron ore players in the Pilbara has strengthened its ability to secure a deal to transport its iron ore, according to The Australian Financial Review.

Atlas Iron chairman David Flanagan said deals such as those involving Brockman Mining, Flinders Mines and Fortescue Metals Group and Aurizon have opened up opportunities for Atlas to exploit third-party infrastructure opportunities (see Tim Treadgold's Is it iron curtains for small producers?).

“I don't think Atlas's position on infrastructure has ever been stronger than what it is right now,” Mr Flanagan told the AFR.

“We are in discussions with the parties that are up there [the Pilbara]; the dialogue is being maintained.”

Aurizon and Brockman recently inked a deal to develop and operate an independent rail line in the region.

Atlas's shares have fallen 55% since a year ago, to 79.5 cents a share.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles