Atlas Iron and Aurox Resources have entered into a deal to share port capacity at the new Utah Point Port at Port Hedland.
The port corporation agreement will allow both miners to maximise capacity at both their proposed berths, the companies said today.
Under the terms of the deal, Atlas will advance a $13.86 million interest free loan to Aurox, that allows the latter to pay its facility charge to the Port Hedland Port Authority by the end of next month.
In consideration, Aurox grants Atlas a first right to use any of Aurox's unused or surplus berth, ship-loading and stockpiling capacity at Utah Point that will be available from March 1 2012.
Atlas and Aurox will also work together to optimise efficiency at the port including Aurox installing materials handling equipment with the possibility of sharing that with Atlas.
"The efficient use of the Utah Point port facility will ensure that Aurox and Atlas will export the maximum number of tonnes allowed by their combined port allocations," Atlas managing director David Flanagan said.
"This is a great example where the Pilbara's iron ore juniors are working together to ensure publicly available infrastructure is fully utilised for the maximum benefit of the state, the community and the shareholders of each company.
"This port cooperation agreement helps ensure that in aggregate 9Mtpa from 1 March 2012, and then 13Mtpa of product from 2015, can be exported by Atlas and Aurox through the Utah Point port facility."
