Analysts say the merger between mining juniors Atlas Iron and...

Analysts say the merger between mining juniors Atlas Iron and Aurox Resources will heat up competition in the Pilbara iron ore sector in north-west Western Australia.

This week's announced merger is expected to see port capacity at Port Hedland's proposed Utah Point increase to up to 33 million tonnes a year.

The merger will also include 187 million tonnes of direct shipping ore for both companies and prospective holding of 15,000 square kilometres in the Pilbara.

Analyst James Wilson from DJ Carmichael says it was a good move by the companies.

"A lot of people are vying for competition and also the big issues going on with the benchmark system and whether that is still going to survive this year with the Chinese steelmakers, so it's a very hot, hot market at the moment to be in," Mr Wilson said.

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Go on Ziggy, make a bid. :)