PERTH (miningweekly.com) – Iron-ore junior Atlas Iron was confident that further cost savings were possible, with MD Ken Brinsden saying that recent government interventions would further assist in this.

Speaking at the Global Iron and Steel Forecast conference, in Perth, Brinsden pointed out that Atlas was targeting an all-in cash cost of between A$60/t and A$63/t for the full year. However, this could be lowered even further, he said.

“Our cost reduction programme has been very sophisticated in its application, and the proof of that is in the pudding,” Brinsden said, referring to the company’s plans to save between A$90-million and A$120-million in cost savings by the end of June.

“The expectation is that this theme will continue. We would love to do it overnight, but it is hard work. But we will absolutely be able to lower our costs over the coming months and years.”

Brinsden said that the cost savings would be driven by the continued low cost of diesel supply, as well as Atlas’ endeavours to secure lower cost sea freight vessels.

The Atlas MD on Wednesday also welcomed the state government’s announcement that it would review fees and charges at the Utah Point port facility - fees which Brinsden called "ridiculous".

Western Australian Mines and Petroleum Minister Bill Marmion on Tuesday flagged price freezes on port fees at the Utah Point port for at least the next 18 months in an effort to assist iron-ore miners in transitioning from construction to production.

The Department of Finance would also be undertaking a review of the Pilbara Port Authority’s charges at Utah Point, after industry bodies raised concerns with Marmion and Treasurer Mike Nahan.

“Substantial savings from this [initiative] are also completely reasonable,” Brinsden commented.

The state government’s royalty relief efforts also made sense, Brinsden said, referring to the earlier introduction of a three-year rebate programme on magnetite royalties, which began in April 2013, and a similar 12-month relief package for junior haematite miners.

“We will continue to reduce our cost base, and should the iron-ore price continue to keep falling, we will make sure that we remain competitive. However, should the price turn the other way, we will have great leverage to benefit from higher iron-ore prices,” Brinsden said.