The company's withdrawal means all eyes are now on Fortescue, which still has a 19.9%-stake in Atlas and has not yet disclosed whether it plans to launch a rival bid or sell its holding into Hancock’s offer.
Fortescue Metals Group Mining News
First production from the Pilbara-based project, which it says it’s one of the world’s most technologically advanced, is expected in 2021.
The offer from Australian billionaire Gina Rinehart's Hancock Prospecting values Atlas shares at 17% more than price reached at Friday close.
Move comes a day after Fortescue Metals said it had built a stake in Atlas large enough to block a takeover.
Fortescue said it had agreed to buy a 15 percent stake in Atlas at A$0.04 per share, or A$55.7 million.
The Eliwana mine will help the company lift its iron ore grades and so satisfy the new demands of its biggest customer, China, which is increasingly asking for higher quality ore for steel mills to help cut smog.
Structural changes in the world's biggest importer, China, are re-shaping how the industry works.
The iron ore producer reported a 2 percent fall in third-quarter iron ore shipments on reduced demand in China.
The project, being considered by the federal government, may cost as much as A$5 billion ($3.9 billion), according to one industry estimate.
The UK-based research and consultancy group has dropped its price forecast to $63 a tonne or 12% below last year's average of $71 per tonne.
Ongoing concerns that looming steel production cuts in China on environmental grounds will sap steel mill demand continue to weigh on prices.
Australia’s Department of Industry, Innovation and Science sees iron ore prices averaging $50 a tonne next year, and dropping to $49 a tonne in 2019.
Figure represents about a third of the country's iron ore mines currently in operations.
Companies have reached agreement for the expansion of Cat® Command for Hauling at Fortescue’s iron ore mines in the Pilbara region of Western Australia.
The commodity has fallen every week so far in September.
While the decision doesn’t ban Fortescue from continuing to operate the mines, it paves the way for the group to sue the company for hundreds of millions of dollars in compensation claims.
China bulls kick iron ore price 6.5% higher.
Ore with 62% content in Qingdao lost $2.33 a tonne to close at $57.91, data from the Metal Bulletin shows, hitting a seven-month low and marking the commodity third consecutive weekly fall.
BMI Research expects prices to continue sliding for at least the next five years on rising supplies from Australia and Brazil and evidence of Chinese demand cooling earlier than expected.
BMI Research expects prices to continue sliding for at least the next five years on rising supplies from Australia and Brazil and expectations for a surplus.
The world's fourth largest miner of the steelmaking ingredient said it also benefitted from declining costs.
Higher commodity exports delivered a record trade surplus of $3.5 billion in December, the second monthly trade surplus Australia has recorded in nearly three years.
Australia's EPA has sanctioned a three-fold expansion of Fortescue Metals Group's (ASX:FMG) Solomon Hub, which could sustain production for another 35 years.
Smaller rival Fortescue Metals went the opposite way — it increased iron ore exports by 5% in the Sep. quarter.
Long-term, the deal could be viewed as the first step of a more disciplined approach to iron ore supply by aligning two of the world’s “big four” producers of the commodity.