26/05/2009 - 09:05

Atlas' Wodgina mine to cost under $10m

26/05/2009 - 09:05

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An infrastructure sharing deal struck earlier this year has substantially lowered start up costs for Atlas Iron's next operation with the Wodgina iron ore mine expected to cost under $10 million.

Atlas' Wodgina mine to cost under $10m

An infrastructure sharing deal struck earlier this year has substantially lowered start up costs for Atlas Iron's next operation with the Wodgina iron ore mine expected to cost under $10 million.

The new Pilbara iron ore miner today released interim feasibility study results for the project, which pegs the capital costs at $9.5 million.

Wodgina is located around 100 kilometres south of Port Hedland.

Atlas today confirmed that Wodgina will be the company's next mine with first production slated for January 2010.

"Wodgina is looking fantastic," managing director David Flanagan said.

"Low strip ratios, low capital and operating costs, minimal environmental impact and close to the world's largest iron ore export port, present a huge opportunity for Atlas shareholders."

Atlas is targeting an initial production rate of 2 million tonnes per annum before ramping up to 3mpta in the second quarter of 2010.

The operation will use processing facilities at the existing Wodgina tantalum mine, owned by Talison Minerals which entered an infrastructure deal with Atlas earlier this year.

Atlas said the deal significantly reduces the capital cost to start mining and also simplifies the mines approvals process.

Cash operating costs have been estimated to be between $37-$45 a tonne and a 15 year mine life is targeted.

Shares in Atlas were up 1.5 cents to $1.525 at 10:43 AEST.

 

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