A rather long post from the fdl thread but it's worth a read as...

A rather long post from the fdl thread but it's worth a read as it mentions Atlas and the Pardoo projectbetween port headland and wallal downs in the north eastern Pilbara which is up near Gondwana's Wallal Downs Iron-ore prospect and would most likely be a similar trucking transport solution ("if" gondwana discovers Fe form the soon to commence exploration program)....check the previous Gondwana announcement re wallal downs and it's location and the size of the 20km long anomoly. cheers fatstocks.

"pilbara iron ore rush (Druidic)
Code: FDL - FLINDERS DIAMONDS LIMITED (Google FDL) Post: 2837419 (Start of thread) Views: 160
Posted: 07/05/08 08:41 Sentiment: Buy Disclosure: Stock Held From: 198.96.xxx.xxx
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smh.com.au

Pilbara upstarts are shown the way
____________________________________

Fortescue has done it, and others are lining up for a crack, writes Jamie Freed.

THE Australian iron ore industry entered a new era yesterday.

Fortescue Metals, the self-proclaimed "new force in iron ore", began loading at Port Hedland the long-awaited first ore from its $4 billion Pilbara project onto a ship bound for China.

Although BHP Billiton and Rio Tinto look set to maintain their dominance of Australian iron ore exports for the forseeable future, it appears they now have a viable competitor on their doorstep.

And Fortescue's boldness - including its decision to fight BHP and Rio for access to their prized railways - has given confidence to a new breed of Pilbara iron ore hopefuls.

"There's no doubt there is an iron ore rush well under way," Southern Cross Equities executive director Rex Adams said at the RIU Sydney Resources Round-up conference yesterday.

Aquila Resources and its joint venture partner, private US group AMCI, yesterday unveiled a positive pre-feasibility study of their West Pilbara iron ore project.

It is expected to cost $US3.9 billion ($4.1 billion) to build the railway and port facilities at Cape Preston to ship an initial 25 million tonnes a year - about half the amount of Fortescue's initial production rate. But the high cost of the infrastructure will be accompanied by low production costs of $US20 a tonne.

Aquila, which also has coal and manganese assets, already has a market value of more than $3 billion. But executive chairman Tony Poli is hoping to follow Fortescue's example and head into an even bigger league.

"There's no doubt that Fortescue has demonstrated to the market that it is possible to develop a large-scale iron ore project," he said. "[Fortescue chief executive] Andrew Forrest has done an exceptional job."

Barring similar aims from WA iron ore heiress Gina Rinehart's private company, Hancock Prospecting, Aquila appears to have the largest ambitions of any of the Pilbara hematite upstarts.

But companies like Atlas Iron, BC Iron, Brockman Resources and FerrAus are also starting to gain support from the market on the back of promising smaller-scale projects and a record iron ore price.

Atlas managing director David Flanagan yesterday modestly noted his company's share price had experienced "a bit of a run" in recent weeks.

Atlas shares have doubled in the last five weeks and hit $4 for the first time yesterday, making it a $1 billion company - even though it does not start shipping its first ore from Fortescue's berth at Port Hedland until October.

"[Atlas] is getting into production quicker than anyone

else and [is] able to capitalise on high prices," Hartleys analyst Andrew Muir said.

Booming Chinese demand for steel has propelled iron ore prices to record highs. BNP Paribas commodities strategist David Thurtell said prices seemed likely to remain high in the near future, adding that Rio and BHP were likely to gain a freight premium of $US15 to $US20 a tonne this year.

The two mining majors had maintained their stranglehold on the Pilbara for more than 40 years due to the high cost of building the infrastructure.

So far, Fortescue has proven amenable to negotiating to haul ore from smaller producers on its railway line, but BHP and Rio have not. The Pilbara upstarts have therefore formed the North West Iron Ore Alliance to lobby for access.

Atlas has a competitive advantage on its peers in that it is not reliant on a railway for its project to be developed and can produce 6 million tonnes a year from its Pardoo and Abydos projects by trucking the ore to Port Hedland. But it would prefer the cheaper method of using BHP's under-utilised Goldsworthy railway to haul the ore.

Others know they will be forced to seek rail haulage agreements, but the success of the Pilbara's "new force" has given them high hopes of getting into production.
Fortescue has done it, and others are lining up for a crack, writes Jamie Freed.

THE Australian iron ore industry entered a new era yesterday.

Fortescue Metals, the self-proclaimed "new force in iron ore", began loading at Port Hedland the long-awaited first ore from its $4 billion Pilbara project onto a ship bound for China.

Although BHP Billiton and Rio Tinto look set to maintain their dominance of Australian iron ore exports for the forseeable future, it appears they now have a viable competitor on their doorstep.

And Fortescue's boldness - including its decision to fight BHP and Rio for access to their prized railways - has given confidence to a new breed of Pilbara iron ore hopefuls.

"There's no doubt there is an iron ore rush well under way," Southern Cross Equities executive director Rex Adams said at the RIU Sydney Resources Round-up conference yesterday.

Aquila Resources and its joint venture partner, private US group AMCI, yesterday unveiled a positive pre-feasibility study of their West Pilbara iron ore project.

It is expected to cost $US3.9 billion ($4.1 billion) to build the railway and port facilities at Cape Preston to ship an initial 25 million tonnes a year - about half the amount of Fortescue's initial production rate. But the high cost of the infrastructure will be accompanied by low production costs of $US20 a tonne.

Aquila, which also has coal and manganese assets, already has a market value of more than $3 billion. But executive chairman Tony Poli is hoping to follow Fortescue's example and head into an even bigger league.

"There's no doubt that Fortescue has demonstrated to the market that it is possible to develop a large-scale iron ore project," he said. "[Fortescue chief executive] Andrew Forrest has done an exceptional job."

Barring similar aims from WA iron ore heiress Gina Rinehart's private company, Hancock Prospecting, Aquila appears to have the largest ambitions of any of the Pilbara hematite upstarts.

But companies like Atlas Iron, BC Iron, Brockman Resources and FerrAus are also starting to gain support from the market on the back of promising smaller-scale projects and a record iron ore price.

Atlas managing director David Flanagan yesterday modestly noted his company's share price had experienced "a bit of a run" in recent weeks.

Atlas shares have doubled in the last five weeks and hit $4 for the first time yesterday, making it a $1 billion company - even though it does not start shipping its first ore from Fortescue's berth at Port Hedland until October.

"[Atlas] is getting into production quicker than anyone

else and [is] able to capitalise on high prices," Hartleys analyst Andrew Muir said.

Booming Chinese demand for steel has propelled iron ore prices to record highs. BNP Paribas commodities strategist David Thurtell said prices seemed likely to remain high in the near future, adding that Rio and BHP were likely to gain a freight premium of $US15 to $US20 a tonne this year.

The two mining majors had maintained their stranglehold on the Pilbara for more than 40 years due to the high cost of building the infrastructure.

So far, Fortescue has proven amenable to negotiating to haul ore from smaller producers on its railway line, but BHP and Rio have not. The Pilbara upstarts have therefore formed the North West Iron Ore Alliance to lobby for access.

Atlas has a competitive advantage on its peers in that it is not reliant on a railway for its project to be developed and can produce 6 million tonnes a year from its Pardoo and Abydos projects by trucking the ore to Port Hedland. But it would prefer the cheaper method of using BHP's under-utilised Goldsworthy railway to haul the ore.

Others know they will be forced to seek rail haulage agreements, but the success of the Pilbara's "new force" has given them high hopes of getting into production.
Fortescue has done it, and others are lining up for a crack, writes Jamie Freed.

THE Australian iron ore industry entered a new era yesterday.

Fortescue Metals, the self-proclaimed "new force in iron ore", began loading at Port Hedland the long-awaited first ore from its $4 billion Pilbara project onto a ship bound for China.

Although BHP Billiton and Rio Tinto look set to maintain their dominance of Australian iron ore exports for the forseeable future, it appears they now have a viable competitor on their doorstep.

And Fortescue's boldness - including its decision to fight BHP and Rio for access to their prized railways - has given confidence to a new breed of Pilbara iron ore hopefuls.

"There's no doubt there is an iron ore rush well under way," Southern Cross Equities executive director Rex Adams said at the RIU Sydney Resources Round-up conference yesterday.

Aquila Resources and its joint venture partner, private US group AMCI, yesterday unveiled a positive pre-feasibility study of their West Pilbara iron ore project.

It is expected to cost $US3.9 billion ($4.1 billion) to build the railway and port facilities at Cape Preston to ship an initial 25 million tonnes a year - about half the amount of Fortescue's initial production rate. But the high cost of the infrastructure will be accompanied by low production costs of $US20 a tonne.

Aquila, which also has coal and manganese assets, already has a market value of more than $3 billion. But executive chairman Tony Poli is hoping to follow Fortescue's example and head into an even bigger league.

"There's no doubt that Fortescue has demonstrated to the market that it is possible to develop a large-scale iron ore project," he said. "[Fortescue chief executive] Andrew Forrest has done an exceptional job."

Barring similar aims from WA iron ore heiress Gina Rinehart's private company, Hancock Prospecting, Aquila appears to have the largest ambitions of any of the Pilbara hematite upstarts.

But companies like Atlas Iron, BC Iron, Brockman Resources and FerrAus are also starting to gain support from the market on the back of promising smaller-scale projects and a record iron ore price.

Atlas managing director David Flanagan yesterday modestly noted his company's share price had experienced "a bit of a run" in recent weeks.

Atlas shares have doubled in the last five weeks and hit $4 for the first time yesterday, making it a $1 billion company - even though it does not start shipping its first ore from Fortescue's berth at Port Hedland until October.

"[Atlas] is getting into production quicker than anyone

else and [is] able to capitalise on high prices," Hartleys analyst Andrew Muir said.

Booming Chinese demand for steel has propelled iron ore prices to record highs. BNP Paribas commodities strategist David Thurtell said prices seemed likely to remain high in the near future, adding that Rio and BHP were likely to gain a freight premium of $US15 to $US20 a tonne this year.

The two mining majors had maintained their stranglehold on the Pilbara for more than 40 years due to the high cost of building the infrastructure.

So far, Fortescue has proven amenable to negotiating to haul ore from smaller producers on its railway line, but BHP and Rio have not. The Pilbara upstarts have therefore formed the North West Iron Ore Alliance to lobby for access.

Atlas has a competitive advantage on its peers in that it is not reliant on a railway for its project to be developed and can produce 6 million tonnes a year from its Pardoo and Abydos projects by trucking the ore to Port Hedland. But it would prefer the cheaper method of using BHP's under-utilised Goldsworthy railway to haul the ore.

Others know they will be forced to seek rail haulage agreements, but the success of the Pilbara's "new force" has given them high hopes of getting into production."