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Atlas Iron and its Port

  1. jake0002

    6,706 Posts.
    here's a thought.
    article says Atalas iron is struggling, and there is a question as to whether Atlas can survive and continue delivering its I/O supply to the rail and Port.

    so I am wondering if PIOP is any possible alternative supplier of I/O to that railway and Port ???

    is PIOP anywhere near Atlas????


    WA advisers consider Atlas Iron health PUBLISHED: 12 hours 51 MINUTES AGO | UPDATE: 12 hours 51 MINUTES AGO PRINT EDITION: 02 Feb 2015
    Edited by Sarah Thompson, Anthony Macdonald and Jake Mitchell
    Share Links: email

    A growing concern for the potential $1 billion sale of Western Australia's Utah Point Bulk Handling facility is the vulnerability of key customer Atlas Iron.
    Atlas has fallen victim to a tumbling iron ore price and in the world of infrastructure where investors will pay up for near-guaranteed income, it looms a potential deal breaker.
    Rothschild and Deloitte have been appointed by the WA state government to sell Utah Point and the Kwinana Bulk Terminal at Port Hedland, with a scoping study underway to determine the best sale route.
    It's understood a key consideration of the scoping study, which is three to six months away, will be how to alleviate the concerns around Atlas and the iron ore market generally. The government has frozen port fees for the Utah Point to ease costs for customers including Atlas Iron, which are struggling to turn a profit amid the languishing iron ore prices.
    Utah is reported to have generated revenue of $87 million in 2012 to 2013, and this is believed to have grown materially since then.
    Some sources have suggested Atlas itself may be attractive to a trade buyer buyer due to its port allocations, which includes up to 15 million tonnes per annum at Utah. Utah's total capacity is 20 Mtpa.
    But some have questioned whether the Utah allocation would be useful to majors Fortescue Metals Group and BHP Billiton, who already have allocations at Port Hedland.
    Street Talk understands Atlas has significantly boosted its iron ore hedging for the first six months of the year.
    Atlas managing director Ken Brinsden said last year the company was a potential buyer of the asset but this would appear unlikely now given the dramatic slump in the iron ore price.
    The WA government, which lost its AAA credit rating in 2013, is selling a myriad of assets to generate $6 billion over three years. The sales on the table include surplus land, betting agency TAB and Utah Point.

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