Atlas Iron resumes operation at Mount Webber

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Image credit: atlasiron.com.au

Last month, independent Australian iron ore company Atlas Iron announced that it has struck a deal with one of Australia’s major mining contractors, BGC Contracting, which would enable the company to restart full production at its Pilbara mines.

Image credit: atlasiron.com.au

Atlas said it would resume production at three of its Pilbara operations after the miner suspended operation due to falling iron ore prices in April.

Last week, the company  announced that it has restarted operation at its Mount Webber mine in the Pilbara region of Western Australia, with processing expected to recommence mid-July.

“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,” said Atlas Managing Director David Flanagan.

Adertisement

According to the ASX Announcement, Mount Webber production, which is targeting a production rate of 6Mtpa, is expected to make a meaningful contribution to the Company’s targeted year end production rate of 14-15Mtpa.

Mining operations are now back up and running at all three of its Pilbara iron ore mines, with a dramatically improved cost base to underpin strong cash flow generation and a more sustainable business.

The resumption of production at Mount Webber is another key step in the company’s strategy to ensure Atlas has a robust financial future.

Atlas also announced that it is currently completing a capital raising that has already received significant support from Atlas’ contractors.

“Shareholders have a priority right to subscribe for new shares (through the Shareholder Participation Offer, ‘SPO’) at 5 cents, with 1 free attached option at 7.5 cents,” the company said.