Atlas Iron has found a buyer for up to 1.5 million tonnes of lithium direct shipping ore from Pilbara Minerals’ Pilgangoora operation, signing an agreement with Chinese state-owned enterprise Sinosteel Corporation.
Atlas announced to the ASX today that the ore would be shipped to Sinosteel over a 15-month period on a fixed-price basis.
Sinosteel will provide funds to cover Atlas’ prepayments due to Pilbara Minerals for mine development costs.
The ore will be processed and transported using Atlas’ existing infrastructure, including the Mount Dove crushing plant and its facilities at Utah Point.
In December, Atlas moved to diversify its revenue streams through a mine gate sale agreement with Pilbara Minerals, which will mine the material, while Atlas will process, transport and export the ore.
At the time Atlas said the deal would deliver an operating margin of $15-$20 per tonne, based on prevailing market prices.
Pilbara Minerals is fast-tracking development at the mine, with first exports expected to commence in the June quarter.