PERTH (miningweekly.com) – Pilbara iron-ore juniors Atlas Iron and Aurox Resources have entered into a port cooperation deal to use their allocations at Utah Point to their maximum and to optimise efficiency.

The Port Hedland Port Authority (PHPA) is currently constructing the Utah Point facility in Western Australia, which will be operational by March.

Atlas has six-million ton a year port capacity at the Utah Point facility until February 2012, at which time it would revert to three-million tons a year.

The port cooperation agreement between Atlas and Aurox would ensure that the two junior miners export, in aggregate, nine-million tons a year from March 2012, and then 13-million tons a year of product from 2015.

Atlas would advance a A$13,36-million interest-free loan to Aurox, to pay the facility charge to the PHPA before the end of March.

In consideration for the loan, Aurox would grant Atlas a first right to use any of its unused or surplus berth, ship-loading and stockpiling capacity at the Utah Point port facility that would become available from March 2012, subject to the necessary government and regulatory approvals.

The two companies would work together to increase efficiency in their combined operations at the Utah Point, including Aurox installing materials-handling equipment and configuration of infrastructure with a view to sharing equally any additional capacity generated by efficiency gains.

In the event that Aurox’s berth, ship-loading or stockpiling capacity at Utah Point was not available Atlas might install temporary materials handling equipment at its own cost.

The companies noted that in 2015, Aurox would have a right to increase stockpile and export capacity from its current six-million tons a year, to ten-million tons a year of product.

When throughput at the Utah Point berth is increased by more than two-million tons a year, Aurox’s ten-million tons a year allocation of capacity would be increased to 12-million tons a year. 

If this additional capacity was available to Aurox, it has agreed to share that capacity with Atlas on an equal basis.

Atlas Iron is mining and exporting from its 100%-owned Pardoo iron-ore project, in the Pilbara region of Western Australia, while Aurox manages and operates the Balla Balla project, and the Yalgoo project, also in Western Australia.

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