Australia - Atlas gets vote of confidence

ASX listed Atlas Iron has announced that it will develop the Corunna Downs Iron Ore Project in the Pilbara region of Western Australia. The construction of Corunna Downs, which has a forecast capital cost of more than AUD47-million, will be funded from operating cash flow following the expected amendments to the term loan B facility.

“This is a strong vote of confidence in Atlas by our lenders, several of whom are significant Atlas shareholders. Corunna Downs, together with Mt Webber, will rebuild our production rate to about 12 million tonnes per annum (mtpa) after Wodgina and Abydos cease production in the first and second half of 2017 respectively. The amendments to the facility will enable Atlas to capitalise on current and future opportunities provided by the stronger iron ore price,” says Cliff Lawrenson, managing director at Atlas Iron.

Atlas released the results of its Corunna Downs definitive feasibility study (DFS) in late 2016. Shipment of iron ore from Corunna Downs is planned to commence in the March 2018 quarter at an initial production rate of 4mtpa over the five- to six-year mine life. Combined with the expansion of Mt Webber, Atlas is targeting a total export rate of 12mtpa by the June 2018 quarter.

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