On January 22, Australian iron ore producer Atlas Iron Limited (Atlas) stated that it has taken another significant step towards achieving its key growth targets, with the company striking two long-term offtake agreements with medium-sized Chinese steel mills covering a total of 1.1 million mt per annum of direct shipping ore.
The two offtake agreements represent approximately 30 percent of the increased production that will occur as a result of the start of operations at Atlas' 100 percent-owned Wodgina direct shipping ore project located in Western Australia. The agreements extend until March, 31, 2013, and were concluded after careful evaluation of the extremely competitive bids received from steel mills.
These two new agreements follow the four offtake agreements announced in late 2008 and early 2009 covering 100 percent of the iron ore that will be produced from Atlas' Pardoo direct shipping ore project, which is located near Port Hedland in Western Australia. Further offtake agreements representing the remaining Wodgina production volumes are expected to be reached in the first half of 2010.