McAleese seeks trading halt to deal with Atlas closures


Transporter says it needs to assess the implications of Atlas’ decision to suspend production.

 

Transport firm McAleese has requested a trading halt to deal with the fallout from Atlas ceasing iron ore production.

The miner, which is one of McAleese’s key customers, last week announced it would suspend its operations due to declining iron ore prices.

In response, McAleese today asked the ASX to grant a 10-day voluntary trading suspension so it can review the impact Atlas’ decision will have on its business.

"While McAleese group has maintained close communication with Atlas, a voluntary suspension is sought while the company considers and reviews the operational and financial implications, and various commercial scenarios that could eventuate, as a result of Atlas’ decision," McAleese says.

"McAleese Group has a strong and longstanding partnership with Atlas and will continue to work constructively with the Pilbara based miner as a priority to achieve outcomes in the interest of the company’s people and business."

Atlas plans to progressively suspend its mining operations throughout April and then cease exports.

It will stop mining and crushing at its Mt Webber project this week, before ending work at its Abydos site and Wodinga mine later this month.

Atlas says it does expect iron prices to rise again but that it is unsure when this will happen.

The miner employs about 500 people, including contractors, at its sites and another 75 people at its Perth office.

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