Atlas signs up MACA for Mt Dove mine

Atlas Iron has appointed mining contractor MACA as its civil construction, mining and crushing services partner for its Mt Dove iron ore project in the Pilbara, after receiving final environmental approvals to kick-off the development.

The contract packages with MACA have a collective value of $66 million.

Atlas said today that construction at Mt Dove would commence early next month, with first production of direct shipping ore to occur in December.

The miner said it anticipated production from Mt Dove to boost its north Pilbara production rate to 8 million tonnes per year in the March quarter next year.

Also today, Atlas said it had received interim approvals for its Abydos mine in the north Pilbara.

The company said it expected to receive final consent to begin mining at Abydos in September this year.

“Atlas’ North Pilbara DSO projects are characterised by relatively low capital expenditure and globally competitive operating costs, contributing to Atlas’ ability to generate significant operating cash flows,” managing director Ken Brinsden said.

“As a result, the company is well-positioned to fund its Pilbara growth objectives.”

At 10:15AM, WST, Atlas shares had dipped 2.1 per cent, trading at $1.93, while MACA stocks were down 2 cents, at $2.10.