Australian iron ore producers Atlas Iron and Roy Hill will merge to form Hancock Iron Ore on 1 July, while maintaining product specifications and honouring existing agreements, the firms announced on 10 June.
The consolidation will not affect customer, vendor, or partner contractual obligations, Hancock Iron Ore told investors on 10 June.
Roy Hill and Atlas Iron export a combined 74mn t/yr of iron ore. The two companies shipped 1.5mn t and 439,514t of ore out of Western Australia respectively over the week to 24 May, accounting for 9.4pc of the region's exports.
Atlas Iron and Roy Hill already collaborate on mining projects. Atlas Iron announced plans in 2021 to move ore mined at its developing McPhee iron ore mine to Roy Hill for processing once production begins.
Hancock Iron Ore will produce 8mn t/yr of ore at McPhee from the 2026-27 financial year to 30 June. Atlas Iron originally expected to mine 14mn t/yr of ore from the site beginning in 2023, but faced delays.
Australian mining magnate Gina Reinhart holds a majority stake in both Atlas Iron and Roy Hill through resources firm Hancock Prospecting. Taiwanese steelmaker China Steel, South Korean steelmaker Posco and Japanese firm Marubeni each own smaller stakes in Roy Hill.
Hancock Prospecting bought Atlas Iron, which was then a struggling, lower-grade ore producer, for A$390mn ($254mn) in 2018, outbidding Australian producer Mineral Resources.
