Atlas Iron gives go-ahead for 6Mtpa at Mt Webber

THE DRILL SERGEANT: The Board of Atlas Iron (ASX: AGO) has approved development of the Mt Webber Stage 2 project, which will double production at Mt Webber to six million tonnes per annum.

Atlas said Mt Webber’s first export of Stage 1 product remains on track for the June 14 quarter, with the expanded production rate of 6Mtpa expected to be achieved by the end of the December 14 quarter.

The company indicated life of mine operating costs are now expected to be in the range of $49 to 51 per wet metric tonne (WMT), which it said represents a reduction from the $56/WMT originally estimated for the Stage 1 project.

 

Atlas’ north Pilbara project portfolio, including Mt Webbber. Source: Company announcement

 

Atlas also advised the combined stages of the Mt Webber project are estimated to cost an aggregate $212 million (*Gross Mine Capex – partially funded by Atlas’ JV Partner Altura Mining (ASX: AJM), under JV terms, inclusive of road upgrades.

“Mt Webber is a highly capital efficient mine, with the completed feasibility study determining a combined cost of Stages 1 and 2 being $212 million for six million tonnes per annum, representing approximately $35 per annualised tonne of production, clearly well below industry norms,” Atlas Iron managing director Ken Brinsden said in the company’s announcement to the Australian Securities Exchange.

“This capital cost is inclusive of a substantial contribution towards regional road upgrades, which will benefit Pilbara road users for years to come.

 “Atlas has a track record of delivering new mines in a cost effective, timely manner and the completion of the second stage of Mt Webber will fulfil the Company’s original Horizon 1 vision, with further material opportunities in the pipeline.

“We continue to have exciting prospects in the vicinity of our existing mines, with Corunna Downs and Miralga Creek continuing to impress.

“Following Atlas’ strong half year performance, the company is extremely well placed to grow our cash flow and create shareholder value, while we work to unlock the value of our Horizon 2 prospects.”
 

Email: atlas@atlasiron.com.au  

Website: www.atlasiron.com.au