Junior miner Atlas Iron Ltd
(ASX:AGO) is in talks with BHP Billiton Ltd
(ASX:BHP) over accessing its iron ore and port rail network in Western Australia.
Both mining companies have entered into an agreement which Altas says involves good faith discussions concerning transport in Port Hedland.
The deal would see the miners cooperate on rail haulage on the BHP’s Goldsworthy line to its Newman rail line.
A feasibility study will look into a multi-purpose ore car and truck dumping hub on the eastern side of Goldsworthy and the construction of a conveyor to bulk stockyards in Port Headland.
The news comes after BHP today announced it will invest an additional $US570 million to ramp up its iron ore operations at the Jimblebar mine in Western Australia.
Atlas Iron booked a net loss of $40.85 million loss in the 2010 financial year.
