Atlas Iron Limited has approved the development of the Corunna Downs Iron Ore Project located in the Pilbara region of Western Australia.
Atlas Managing Director Cliff Lawrenson said the construction will be funded from operating cashflow following the expected amendments to the Term Loan B facility, which will allow the company to accumulate up to a further A$45 million in cash generated.
“This is a strong vote of confidence in Atlas by our lenders, several of whom are significant Atlas shareholders,” Mr Lawrenson remarked.
“Corunna Downs, together with Mt Webber, will rebuild our production rate to approximately 12mtpa after Wodgina and Abydos cease production in the first and second half of 2017 respectively. The amendments to the facility will enable Atlas to capitalise on current and future opportunities provided by the stronger iron ore price.”
According to the company’s estimates, shipments of iron ore from Corunna Downs is planned to commence in the March 2018 quarter at an initial production rate of 4mtpa over the 5-6 year mine life.