Atlas Iron to resume operations at Pilbara mines

30 April 2015 (Last Updated April 30th, 2015 18:30)

Atlas Iron plans to recommence operations at both Abydos and Wodgina in May, with processing and haulage restarting shortly thereafter.

Australia-based Atlas Iron has decided to resume mining at its Pilbara mines, where it previously suspended operations.

The company plans to recommence operations at both Abydos and Wodgina in May, with processing and haulage restarting shortly thereafter.

Atlas Iron said that the company's latest decision is the result of a substantial reduction in forecast cash costs for May at its two mines.

In March, the company had announced the successful production and sale of Atlas' first lump cargo from Abydos mine.

"Atlas Iron plans to recommence operations at both Abydos and Wodgina in May, with processing and haulage restarting shortly thereafter."

According to the firm, up to 65% of Abydos' production will be in the lump product category.

Atlas plans convert the initiatives into possible longer-term operating solutions. It is continuing to assess its options at the Mt Webber mine.

The new operating model includes lump product streams and assistance provided by key service providers. Atlas expects this model to provide positive e cash flow in May.

In April, the company announced it will suspend mining operations at its mine sites citing a drop in the iron ore price. Further, the company said that following the suspension of operations at all of its mines it will stop exports.

At that time, the company announced to halt mining and crushing at the Abydos project within 14 days and complete operations at the Wodgina mine in late April.