Atlas to develop iron mine in Pilbara region
Atlas Iron announced that it had received board approval to develop the Mount Webber Mine with Altura Mining.
Altura Mining said in a statement that the companies will proceed with the development of the project 230 km from Port Hedland with first shipments planned for the second quarter of 2015.
Works will begin in the last quarter of this year, and target an initial shipment rate of 3Mt/a, as part of Atlas’ overall north Pilbara standard product blend, with a target ore grade of 57.2 percent iron.
It will double production to 6 Mt/a in stage two of the mine’s development.
The deposit will be mined by conventional openpit mining practices, rock breakage by drill and blast, and excavation by load and haul. Environmental approval has been granted for the project and the mine is expected to have a life of 18 years.
Ore from the mine will be trucked to Utah Point port during the first phase of development, although Atlas has slated the mine production as part of any future rail agreements.
Total capital costs for the mine are estimated to run to $146 million.
In a company statement, Atlas managing director Ken Brisden said "the decision to develop Mt Webber represents another key milestone for Atlas..
"Mt Webber is the largest of our Horizon 1 mines and provides us with high quality, long life production which will enable Atlas to reach its targeted 12 Mt/a production rate by the June quarter of 2014.
"With our Pardoo, Wodinga, and Mount Dove mines in operation, Abydos due to commence in the current quarter and now Mt Webber being develop, Atlas will have delivered five mines in around five years."
