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July 5, 2015

Atlas Iron restarts mining operations at Mount Webber mine in Australia

Atlas Iron has restarted operations at its Mount Webber mine located in the Pilbara region of Western Australia.

Mt Webber

Atlas Iron has restarted operations at its Mount Webber mine located in the Pilbara region of Western Australia.

The iron ore company said that it plans to recommence processing during mid-July with Mt Webber ore tonnes contributing to subsqeuent shipping.

Atlas Iron closed the mine in April after iron ore prices dipped drastically.

Mount Webber production is expected to contribute to the company’s targeted year-end production rate of 14Mtpa-15Mtpa.

According to the company, the project is expected to produce iron ore at a rate of 6Mtpa for a mine life of more than eight years.

Atlas’s break-even cost of production declined to about $50/dmt following agreements with BGC Contracting and other key contractors and suppliers announced on 2 June.

"Atlas is on track to grow production over the remainder of 2015 with significantly improved margins compared to operations pre-suspension."

The company also announced various cost reductions in corporate overheads.

Under the agreement, Atlas has agreed to pay BGC an option fee of A$3.45m ($2.6m) in its shares representing A$3m ($2.3m) credit against the future purchase of the Mt Webber crushing as well as screening plant.

Atlas Iron managing director David Flanagan said that mining operations are running at all three of its Pilbara iron ore mines.

Flanagan said: "With Mount Webber mining operations now back underway, Atlas is on track to grow production over the remainder of 2015 with significantly improved margins compared to operations pre-suspension, thanks in large part to the support of our key contractors and suppliers."


Image: Mount Webber mine in the Pilbara region of Western Australia. Photo: courtesy of Atlas Iron Limited.

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