Atlas Iron has approved the development of the Corunna Downs iron ore project in the Pilbara region of Western Australia.
Construction of the project is expected to cost around $47-53 million in capital, receiving funding from amendments to the Term Loan B facility.
The loan amendments will enable Atlas to gain an additional $45 million for the project.
Atlas Iron managing director Cliff Lawrenson said, “Corunna Downs, together with Mt Webber, will rebuild our production rate to approximately 12mtpa 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.”
Iron ore shipments from the project are set to begin in March 2018 with an initial production rate of 4mtpa over its five to six-year mine life.
With the added expansion of the Mt Webber mine, the company is targeting a total export rate of 12mtpa by June 2018.