02/07/2015 - 13:33

Atlas reopens Mt Webber

02/07/2015 - 13:33

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Atlas Iron has reopened its Mount Webber iron ore mine, marking the recommencement of mining at all three of the company’s Pilbara operations after shutting them less than three months ago.

Atlas Iron managing director David Flanagan.

Atlas Iron has reopened its Mount Webber iron ore mine, marking the recommencement of mining at all three of the company’s Pilbara operations after shutting them less than three months ago.

Atlas struck a deal with BGC Contracting in early June to reopen Mt Webber, and followed the restart of its Abydos and Wodgina mines in May, which was achieved after it made agreements with Maca and McAleese Group.

The iron ore miner is targeting a year-end production rate of 14 million to 15 million tonnes per annum, at a break-even cost of $US50 per dry metric tonne.

Managing director David Flanagan said the company was glad that its Pilbara mining operations were back up and running, with an improved cost base to underpin strong cashflow generation.

“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.

Atlas shareholders last week supported a company saving capital raising that seeks to raise $180 million at 5 cents a share.

The raising will mean significant dilution for current shareholders, more than quadrupling the number of shares on issue.

The company's shares last traded in April at 12 cents.

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