rail deal by end of year !

http://www.miningweekly.com/article/atlas-hopes-to-have-rail-deal-for-expansions-in-place-by-year-end-2013-10-17

Atlas hopes to have rail deal for expansions in place by year-end

By: Esmarie Swanepoel

17th October 2013

PERTH (miningweekly.com) – ASX-listed iron-ore miner Atlas Iron’s MD Ken Brinsden is hopeful that the company could secure rail solutions for its Horizon 2 expansion projects by the end of the year.

However, he told journalists on a conference call on Thursday that significant work had to be done to reach definitive agreements.

“We want to make sure that we can get a deal that stands the test of time, and it will have to do so, because the bigger mines [that make up the Horizon 2 projects] would have much longer mine lives,” Brinsden said.

The Horizon 2 projects were expected to take Atlas Iron’s output from the current 10-million tonnes a year to 15-million tonnes a year and beyond. The projects would include McPhee Creek, where a prefeasibility study is under way. The study is targeted for completion by the March quarter of next year.

Meanwhile, Atlas on Thursday reported record shipments during the three months to September, as the Abydos mine added to its production portfolio.

Some 2.4-million tonnes of ore was shipped during the quarter under review, compared with the 2.22-million tonnes shipped in the previous three months. Atlas was now at an yearly production and export rate of some ten-million tonnes.

“Strong production from existing operations, combined with the commencement of mining and haulage from Atlas’ fourth mine, Abydos, has resulted in another quarter of record shipping,” said Brinsden.

He added that the continued strong iron-ore price, coupled with a focus on cost control and expanded production, had allowed Atlas to maintain cash on hand of A$378-million by the end of September, while investing some A$90-million in mine and infrastructure growth projects.

Brinsden pointed out that Altas had also largely completed the commissioning of the Utah Point yard 2 facility, ensuring that the miner had sufficient port capacity to meet production from existing mines, as well as the Mount Webber mine, which was scheduled for its first haulage in the June quarter of next year.

Looking ahead, Brinsden said strong iron-ore prices would support Atlas during the next quarter, and that Chinese steel production levels remained high while iron-ore inventories were moderate, indicating the ongoing iron-ore price strength