New mine approved for Atlas Iron

Resurgent iron ore miner Atlas Iron will begin production at its Corunna Downs project in the Pilbara in March next year, after giving the green light for its development today.

Atlas today said the mine would cost between $47 million and $53 million to bring into production.

Corunna Downs will be funded from operating cash flow, while changes to one of its finance facilities will allow it to drawn down an additional $45 million for its development.

Atlas Iron managing director Cliff Lawrenson said there was a strong vote of confidence in the company by its lenders.

“The amendments to the facility will enable Atlas to capitalise on current and future opportunities provided by the stronger iron ore price,” he said.

“Corunna Downs, together with Mt Webber will rebuild our production rate to approximately 12mtpa after Wodgina and Abydos cease production in the first and second half of 2017 respectively.” 

At the time of writing shares were up by 8.3 per cent at 5 cents per share.