afr article

Are they referring to us as the "even smaller IO miner" ?

From AFR 11/07/2013

Atlas Iron keeps truckin', but for how long?
Atlas Iron remains locked in
discussions with Fortescue Metals for
access to its prized rail infrastructure
and the junior's expansion activity has
only heaped on the pressure to get a
deal done.
Atlas's share price has halved in the
past six months and there are believed
to be mounting demands from
shareholders to sign a rail agreement
with FMC's The Pilbara Infrastructure.
This comes amid reports the
infrastructure subsidiary is close to
attracting an even smaller iron ore
miner to the rail line to sweeten the sale
of a minority interest in TPI.
With Brockman Mining siding up to
Aurizon, locking down a rail provider is
becoming increasingly tense.
A deal would make all the difference
to Atlas which is in the process of
developing its fifth mine in five years
and has a number of other sites
earmarked for mining.
Its decision to plough ahead with Mt
Webber failed to inspire the market but
it is mention of a "future rail
agreement" that has led to the market
running the numbers.
While Atlas's official line is it's happy
to keep on trucking its ore to Port
Hedland, its managing director Ken
Brinsden made had no secret of the fact
that Mt Webber would be far more
cost-effective with rail access .
The benefits would not stop there.
UBS analysts said on Wednesday, a rail
haulage deal with TPI would unlock
some of the junior's stranded assets,
including Corunna Downs and
McPhee Creek mines, which are
located further to the east of Mt
Webber . UBS highlighted that
Fortescue had previously said TPI had
about180 million tonnes a year port
capacity, while Fortescue (and TPI's
only third-party customer BC Iron) was
ramping up to 156Mtpa. Taking on
Atlas would just require investment in
rolling stock and passing loops. The
broker estimated road haulage would
cost Atlas $22.80 a tonne plus $10 a
tonne for port and rail at Port Hedland
and Utah point- making it financially
indifferent to move from road to rail.
Talks between Fortescue and
Pilbara iron ore juniors come as
Fortscue seeks to sell a minority stake
in TPI. A third-party deal could see a lift
in the infrastructure's value.