Atlas said today it made a submission to the National Competition Council pushing third-party access to BHP Billiton's Goldsworthy railway, which runs directly through the company's Pardoo project.
The railway was originally constructed by BHP to service the Goldsworthy mine inland of Port Hedland, and was extended to service the Shay Gap and Yarrie mines.
However, Atlas maintains the operation now has considerable spare capacity, with only Yarrie still in operation and producing less than 1 million tonnes per annum.
Atlas managing director David Flanagan told MiningNews.net the submission sent a clear signal to the WA State Government about rail haulage in the Pilbara.
"This is about signalling to the Government that we are supporting the Government with their rail haulage initiatives, and saying if there is a third-party rail access regime up there, there will be a lot more mining companies, and that's good for the state."
Atlas plans to begin production at Pardoo in 2010 and will initially truck iron ore from the project to Port Hedland, even as production ramps up from 1Mtpa to 3Mtpa.
However, Flanagan said that unless Atlas gets rail access of some sort its growth at Pardoo will be constrained at 3Mtpa.
He also said it was foolish for the company not to investigate accessing Goldsworthy, given the highway the company will use for trucking runs alongside the railway line, and its spare capacity.
"We see ourselves having the capacity to export 12 million tonnes per annum from our two projects, Abydos and Pardoo. It's not critical for the growth of the company, but if we are going to grow Pardoo beyond 3 million tonnes per annum then yes, we need rail access."
Atlas has an agreement with Fortescue Metals Group about potential open access to its railway lines in the same area, which was an independent matter to the Goldsworthy access, Flanagan said.
However, FMG is also seeking open access to Goldsworthy.
Earlier this year the emerging iron ore producer lodged applications with the National Competition Council to declare sections of Rio Tinto's Hamersley and Robe River railways and Goldsworthy railway networks open to third parties under part 111A of the Trade Practices Act.
"If their declaration is successful then it will mean someone can run up that railway and provide us with a haulage service or we could run our own rolling stock on the railway line," Flanagan said.
Atlas was one of the founders of the North West Iron Ore Alliance, and Flanagan confirmed the Alliance also made submission to the NCC yesterday in favour of third-party access to the Goldsworthy track.
Flanagan would not comment on any discussions the company may have had with BHP.
In February, the new Federal Resources and Energy Minister Martin Ferguson flagged possible reforms to laws governing third-party rail access.
"We've got to work out a framework which guarantees further investment by BHP… and further investment by Fortescue, but not on terms which destroy what is the best mining logistics chain in the world," Ferguson said at the time.
"We have to make sure that our legislative regime facilitates investment, efficient logistics operations, while guaranteeing haulage, but not at the expense of efficiency."
Shares in Perth-based Atlas were last trading at $3.15, up 6c this morning.
