Australian iron ore miner Atlas Iron Limited has announced that it has completed the sale of the its Balla Balla magnetite project located on the Pilbara coast in Western Australia to Australia-based exploration company Forge Resources Limited.
The total cash consideration of A$39.5 million was paid to Atlas prior to settlement rather than in two stages, A$17.5 million on settlement and A$22.5 million 12 months later, as originally announced in December 2011.
The Balla Balla project sale is part of Atlas' strategy to grow its Pilbara direct shipping ore operations rapidly, with its iron ore production rate forecast to increase from 6 million mt per year currently to 8 million mt per year by early 2013 and 12 million mt per year by December 2013. Atlas is targeting production of up to 46 million mt per year by 2017.