Atlas Iron is pleased to advise it has received approval from its Board and concluded the necessary agreements with its joint venture partner, Altura Mining Limited, to progress the Mt Webber mine to development. The Mt Webber project spans mining tenements M45/1209 (Atlas 70%, Altura 30%), and the northern adjoining tenement M45/1197 (Atlas 100%). The Mt Webber mine is located 230km via road south-southeast of Port Hedland and has already received environmental approval, paving the way for Atlas to commence immediate development works. Mining operations will commence during the December quarter 2013, with first ore shipments from the June quarter of 2014, targeting an initial rate of 3Mtpa as part of Atlas’ overall North Pilbara standard product blend.

The project, which has a capital development cost of $146M (100%), is fully funded via Atlas’ existing cash at bank. Mt Webber has an initial mine life of 18 years at a 3Mtpa production rate. Atlas is targeting an increased production rate of 6Mtpa in a stage 2 development at the mine.  Mt Webber ore will be trucked to Utah Point port as part of this first phase development, however Mt Webber mine production could also comprise part of any future rail agreement. Atlas Managing Director, Ken Brinsden said “The decision to develop Mt Webber represents another key milestone for Atlas. Mt Webber is the largest of our Horizon 1 mines and provides us with high quality, long life production which will enable us to reach our targeted 12Mtpa production rate by the June quarter of 2014.”

“With our Pardoo, Wodgina and Mount Dove mines in operation, Abydos due to commence in the current quarter and now Mt Webber being developed, Atlas will have delivered five mines in around five years. This positions the Company to deliver strong cash flows, which will in turn underpin returns to shareholders and enable Atlas to consider further investment in its pipeline of quality growth projects.” "Atlas is also pleased to assist our joint venture partner Altura Mining join the ranks of the Pilbara iron ore producers via common sense infrastructure sharing arrangements which reward both parties, local communities and the State,” Mr Brinsden added.