"We see long-term synergies between the Atlas assets and the other iron ore interests within the Hancock Group," he said. "There is potential to unlock value through the future development of Atlas resources as part of our wider system of operations. "If we obtain control of Atlas, we intend to conduct a strategic review to better understand the most appropriate time and means to develop and integrate Atlas into the existing operations of the Hancock Group," Mr Watroba said. "The Hancock Group iron ore interests produce iron ore products that are priced off the 62 per cent index. Some of the Atlas deposits contain elements that have complementary characteristics providing optionality and opportunity to improve the non-iron elements of ore quality further. "The remainder of the Atlas resources could serve to extend the life of existing Hancock iron ore interests." The Hancock move to a 19.9 per cent shareholding last week came days after Mr Forrest's Fortescue Metals Group had taken an almost identical stake in Atlas, which some analysts speculated was a blocking ploy by Fortescue to stop more low-grade iron ore entering the market . Unlike the MinRes offer, the Hancock bid is not subject to a minimum acceptance condition and leaves Fortescue with some decisions to make. In a brief statement Fortescue chief executive officer Elizabeth Gaines said: "We will continue to assess our strategic options and do not propose to make any further comment at this time." MinRes also said it was considering its position. Atlas shares traded in reasonable volumes above the Hancock offer price after the trading halt was lifted, to close at 4.4¢. The Hancock bid sets the scene for a showdown between Mrs Rinehart and the West Australian government over its policy of reserving berth space at Port Hedland for junior miners. The policy prevents Roy Hill using infrastructure leased to Atlas at Utah Point and would also exclude it from developing a third Roy Hill berth in part of the inner harbour known as South-West Creek. Roy Hill has berths in the inner harbour adjacent to two others, known as South West Creek 3 and 4, earmarked for development by junior miners. MinRes has expressed an interest in developing one of two berths set aside for junior miners known as South-West Creek 3 and 4, while it is understood Roy Hill could benefit from the development of the other under a compromise with the WA government. MinRes has had a offer for Atlas on the table since early April, but gave up exclusivity after Fortescue grabbed its stake. The MinRes offer represented a 59 per cent premium on Atlas' closing share price on April 4. The Hancock offer represents a 41 per cent premium on the implied value of the MinRes offer and is much more straightforward for Atlas shareholders.
Australian miner Hancock Prospecting, owned by Gina Reinhart, Australia's richest woman, has made a bid for junior iron ore miner Atlas Iron, valuing the firm at AUD390m ($288m). The unconditional cash offer was made through Redstone, a subsidiary of Hancock Prospecting, and follows a recent share purchase that took its stake in Atlas to almost 20% days after rival firm Fortescue did the same. Hancock's bid also comes after an offer of AUD280m from Mineral Resources in April. Fortescue CEO Elizabeth Gaines said the company would "continue to assess our strategic options".