Embattled iron ore miner Atlas Iron recommenced mining at their Mount Webber mine this week.
The company announced that processing would re-commence in mid-July, with shipping to begin shortly after.
However, iron ore has dropped to US$55.80 per tonne, squeezing Atlas’s margins once again.
Mount Webber is targeting a production rate of 6Mtpa, with the company’s target for year’s end at 14-15Mtpa.
Atlas said their break-even cost is now down to US$50 per tonne, thanks to contract renegotiations with BGC Contracting.
Atlas Iron managing director David Flanagan said the company was delighted that mining operations were back up and running at all three Pilbara iron ore mines with an improved cost basis.
“With Mount Webber mining operations now back underway, Atlas is on track to grow production over the remainder of 2015 with significantly improved margins compared to operations pre-suspension, thanks in large part to the support of our key contractors and suppliers,” he said.
Atlas Iron break-even price prior to closing down mining operations in April was US$60 per tonne, after which Ken Brinsden stepped down as managing director.
In May Atlas accepted the royalty relief package offered by the WA government, which allowed Atlas to claim 50 per cent rebate on royalties until the end of September 2015.