While the company’s near-term focus remains on ramping up its Pilbara iron ore production rate to 12 million tonnes per annum by the end of 2013, in its financial results, Atlas said it had kicked off talks with potential equity parties interested in its phase 2 growth stage.

Atlas commercial executive director Mark Hancock said the company’s preferred outcome would be to secure an equity project joint venture arrangement for the development of Horizon 2, where the group would either secure supply or be involved in the infrastructure space.

“Obviously there have been a few deals in mature assets with BHP selling down to their partners, which indicates there is appetite for customers wanting to get themselves involved in an integrated sense in the supply change,” Hancock said on a teleconference call.

“The interest levels are preliminary but we’ve got a wide suite of participants across a number of countries that are interested.

“The Pilbara brand is obviously well known to those players … we expect interest to remain strong.”

Atlas managing director Ken Brinsden echoed Hancock’s words.

“We have already had a pretty reasonable level of interest so it’s something we are very keen to pursue,” he said.

The company would prefer to sell down a 30-40% stake in the projects while still retaining a majority interest.

Atlas hopes to lock something in on this front by the end of the 2014 financial year.

Abydos, Mt Dove and Mt Webber underpin Atlas’ Horizon 1 targeted production rate of 12Mtpa, while its McPhee Creek project will play a major role in its Horizon 2 growth strategy.

Atlas’ second growth program targets the expansion of Atlas’ production base from 15Mtpa to up to 46Mtpa.

For the phase 2 development to be feasible, the company stated the importance of infrastructure solutions, particularly securing rail access.

Providing an update on infrastructure talks, Brinsden said substantial progress had been made.

“As we sit here today we have a good understanding of the relative commercial outcomes as to what might be possible with respect to haulage services,” he said.

The company remained tight-lipped on the specifics but said it was a matter of converting discussions into agreements for the long-life assets.

Brinsden denied the company was feeling pressure to lock in a rail solution and reiterated it was making material progress.