Why is Fortescue blocking Atlas?

Via UBS:

What is Atlas Iron?

AGO is predominately an iron ore producer. It has three operations in the north of the Pilbara and sold 14.4Mt (via Utah Point) in FY17 at a C1 cash cost of A$34.8/wmt FOB (cf. FMG c.US$11-12/wmt). With a reserve grade for its current operations at c.57% Fe, AGO has been the recipient of low grade discounts. It has other development opportunities such as Corunna Downs (Reserve 21.Mt @ 57% Fe, 4Mtpa at 5-6 year mine life) and is active in the lithium space (e.g. exploration, 15 month DSO off-take deal with PLS at Pilgangoora) and manganese (e.g. purchase of up to 100kt over 4 month period). At H1 results in Feb, it posted a statutory net loss after tax of A$21m.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.