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Atlas Iron to export DSO lithium to China

02 Mar 2018 11:46 GMT
Atlas Iron to export DSO lithium to China

Johannesburg, 2 March (Argus) — Perth-based Atlas Iron has signed an agreement with Sinosteel Australia to export lithium direct shipping ore (DSO) to China from Pilbara Minerals' Pilgangoora lithium project in Australia.

It will export up to 1.5mn t of ore over a 15-month period at a fixed price, it said.

Sinosteel will advance funds to cover prepayments due to Pilbara Minerals for direct shipping ore mine development costs.

Atlas will process and transport ore using its Mt Dove crushing hub and Utah point port facilities. First exports are expected in the June quarter with Atlas making a margin of $15-20/t.

Pilbara Minerals expects to produce lithium concentrate from the first stage of Pilgangoora within the next few months. It is completing a feasibility study to expand its ore throughput to 5mn t/yr by adding a second stage to the project.

The company signed direct shipping ore agreement with Atlas to provide early cash flow for its project and to meet the strong demand for lithium ore and concentrate in the Chinese market, it said.