Atlas restarts Mt Webber

MINING has restarted at Atlas Iron’s Mt Webber operation, with processing to resume in the next two weeks.
Atlas restarts Mt Webber Atlas restarts Mt Webber Atlas restarts Mt Webber Atlas restarts Mt Webber Atlas restarts Mt Webber

Mining has restarted at Atlas Iron’s Mt Webber operation, with processing to resume in the next two weeks.

Kristie Batten

It follows the restarts of the Wodgina and Abydos mines in May.

A deal with BGC Contracting allowed the company to restart the mine by cutting costs by 10-12%.

Atlas will issue BGC with $A17.4 million worth of shares.

Based on full cash costs, Atlas’ group breakeven cost of production is down to around $US50 per dry metric tonne on an IODEX 62% iron CFR China basis.

Mt Webber production will ramp back up to 6 million tonnes per annum and help the company reach its targeted production rate of 14-15Mtpa by year-end.

Atlas managing director David Flanagan said the company was delighted to have resumed all three mines at a lower cost base.

“With Mt 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,” he said.

The company has forward-sold all iron ore for the September quarter and some for the December quarter.

Flanagan revealed last week that the company had forward-sold a cargo in December for $57/t.

Atlas said demand for its products had been strong and discounts had been reduced.

Flanagan is currently on a global roadshow to secure support for Atlas’ $A180 million capital raising, which when completed, will allow the company to resume trading after a near four-month suspension.

Shares in Atlas last traded at 12c, while the capital raising is being done at 5c.