Global miner BHP Billiton Ltd is in the final stages of negotiations on a rail haulage agreement with junior miner Atlas Iron Ltd in Western Australia's Pilbara region, according to The Australian Financial Review newspaper.
According to the newspaper, both Atlas and fellow junior miner Brockman Resources Ltd have been engaged in lengthy discussions with BHP, over access to the mining giant's rail services at Mt Newman in WA.
The talks are shrouded in secrecy, with confidentiality agreements between the firms preventing any comment of a public nature on the deal.
Both Atlas and Brockman are members of the North West Iron Ore Alliance (NWIOA), which earlier in the year made a submission to the Australian Competition and Consumer Commission (ACCC) over BHP's rail haulage obligations.
The news comes after BHP said it would spend a further $US570 million ($584.86 million) to expand the port, rail and mine infrastructure at its Jimblebar iron ore mine east of Newman.
The extra funding is part of a $US635 million investment to fast track projects in the region.
AGO Price at posting:
$2.75 Sentiment: Buy Disclosure: Held
