JOHANNESBURG (miningweekly.com) – The board of ASX-listed Atlas Iron has approved the construction of a new A$146-million iron-ore mine near Port Hedland, in Western Australia, following the conclusion of an agreement with fellow-listed joint venture (JV) partner Altura Mining.
The company is aiming to start mining operations in December, with exports set for mid-2014.
Mt Webber, which would be Atlas Iron’s fifth mine, would target an initial production rate of three-million tons a year of iron-ore, which would form part of Atlas’ overall North Pilbara standard product blend.
At this production rate, the mine would have an initial mine life of 18 years.
Mt Webber ore would be trucked to Utah Point, at Port Hedland, as part of the first-phase development, with first ore shipments expected in June next year.
The company said it would later target an increased production rate of six-million tons-a-year of iron-ore in a Phase 2 development at the project.
Atlas MD Ken Brinsden said in a statement that the decision to develop Mt Webber represented another key milestone for the company, as it was the largest of its Horizon 1 mines and would provide Atlas with high quality, long-life production.
This would enable the iron-ore producer to reach its targeted 12-million-ton-a-year production rate by the June quarter of 2014.
“With our Pardoo, Wodgina and Mt Dove mines in operation, Abydos due to start in the current quarter and Mt Webber in development, Atlas will have delivered five mines in around five years. This positions the company to deliver strong cash flows, which will, in turn, underpin returns to shareholders and enable Atlas to consider further investment in its pipeline of quality growth projects,” he commented. Edited by: Mariaan Webb
GDA Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
