Atlas Iron on track to expand
Rebecca Le May
August 4, 2009 - 4:49PM
http://news.theage.com.au/breaking-news-national/atlas-iron-on-track-to-expand-20090804-e8dq.html
Atlas Iron Ltd says it is on track to become Australia's fourth largest iron ore miner by 2012 at "ridiculously low capital costs".
It also says it is keeping a keen eye on consolidation opportunities in Western Australia's Pilbara region.
"We think we've got a chance to be a big company," managing director David Flanagan told the Diggers and Dealers mining conference in Kalgoorlie on Tuesday.
"You do not need to be a behemoth to be an iron ore company.
"You do not need huge debt."
Mr Flanagan said Atlas was on track to achieve its goal to lift annual output from one million tonnes (Mt) to 12Mt by 2012.
This would make Atlas the fourth largest iron ore miner in Australia behind the much-larger BHP Billiton Ltd, Rio Tinto Ltd and Fortescue Metals Group Ltd.
Atlas already is largest landholder within 150km from Port Hedland.
The company last month decided to proceed with its second mine, Wodgina.
The project is expected to cost less than $10 million to develop because Atlas will use Talison Minerals' Wodgina tantalum mill under an agreement reached after the private company shut down the Wodgina tantalum mine, which is the world's largest.
This compares to the "ridiculously low capital costs" of developing Atlas' first mine, Pardoo, which required capital expenditure of $18 million, Mr Flanagan said.
Its third proposed mine, Abydos, is expected to require a more substantial capital outlay of $50-60 million.
Production is expected to start at Wodgina in January at an initial rate of 2Mt per annum, ramping up to 3.6 Mt per annum later in 2010.
Ore will be exported through the new Utah Point common user berth at Port Hedland.
Atlas exports ore from Pardoo through Fortescue's Point Anderson port facility at the same town.
Atlas announced on Tuesday its maiden resource estimate, from four of six prospects at the Mt Webber project, of 32.62 Mt in the inferred category of Australia's mineral reporting code.
Mr Flanagan said the company was looking out for consolidation opportunities in the Pilbara with $164 million cash in the bank.
He vowed to assist Fortescue's push to have BHP Billiton and Rio Tinto's Pilbara railway lines declared open to third pates by regulators.
"Not that we need it," he added.
Rebecca Le May
August 4, 2009 - 4:49PM
http://news.theage.com.au/breaking-news-national/atlas-iron-on-track-to-expand-20090804-e8dq.html
Atlas Iron Ltd says it is on track to become Australia's fourth largest iron ore miner by 2012 at "ridiculously low capital costs".
It also says it is keeping a keen eye on consolidation opportunities in Western Australia's Pilbara region.
"We think we've got a chance to be a big company," managing director David Flanagan told the Diggers and Dealers mining conference in Kalgoorlie on Tuesday.
"You do not need to be a behemoth to be an iron ore company.
"You do not need huge debt."
Mr Flanagan said Atlas was on track to achieve its goal to lift annual output from one million tonnes (Mt) to 12Mt by 2012.
This would make Atlas the fourth largest iron ore miner in Australia behind the much-larger BHP Billiton Ltd, Rio Tinto Ltd and Fortescue Metals Group Ltd.
Atlas already is largest landholder within 150km from Port Hedland.
The company last month decided to proceed with its second mine, Wodgina.
The project is expected to cost less than $10 million to develop because Atlas will use Talison Minerals' Wodgina tantalum mill under an agreement reached after the private company shut down the Wodgina tantalum mine, which is the world's largest.
This compares to the "ridiculously low capital costs" of developing Atlas' first mine, Pardoo, which required capital expenditure of $18 million, Mr Flanagan said.
Its third proposed mine, Abydos, is expected to require a more substantial capital outlay of $50-60 million.
Production is expected to start at Wodgina in January at an initial rate of 2Mt per annum, ramping up to 3.6 Mt per annum later in 2010.
Ore will be exported through the new Utah Point common user berth at Port Hedland.
Atlas exports ore from Pardoo through Fortescue's Point Anderson port facility at the same town.
Atlas announced on Tuesday its maiden resource estimate, from four of six prospects at the Mt Webber project, of 32.62 Mt in the inferred category of Australia's mineral reporting code.
Mr Flanagan said the company was looking out for consolidation opportunities in the Pilbara with $164 million cash in the bank.
He vowed to assist Fortescue's push to have BHP Billiton and Rio Tinto's Pilbara railway lines declared open to third pates by regulators.
"Not that we need it," he added.
