SYDNEY (Scrap Monster): Atlas Iron Limited (ASX: AGO), an Australian based dynamic iron ore producer, said that they expects to produce up to 8 million metric tonnes (Mmt) per year of iron ore in the Pilbara region in Western Australia by March 2013 as its Mt Dove mine will be commissioned by December.
The company has received final environmental approval for Mt Dove, and construction at the site will start early July. Mt Dove will have a mine life of only 15 months, but the grade contribution will enhance the overall Atlas Pilbara blend. It has received interim approval for the Abydos mine, with final approval expected in September 2012.
First production from the Abydos mine is scheduled for the June 2013 quarter and will take Atlas' production rate to 10 million metric tonnes per year.
Meanwhile, it remained on target to start production at its Mt Webber mine by December 2013 at a rate of 2 million metric tonnes per year and ramp up to 6 million mt/year over time.
“The company's North Pilbara blend direct shipping ore projects have globally competitive operating costs and low capital expenditure, adding that company remains well positioned to fund its Pilbara growth objectives,” said Ken Brinsden, Atlas' managing director.
Atlas currently produces 6 million metric tonnes per year of iron ore from its Pilbara operations and aims to reach output of 46 million metric tonnes per year by 2017.
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