Atlas Iron to reopen mines

Atlas Iron has surprised the market by deciding to keep production up and running at two of its mines.

The move comes after the company announced it would close all its operation last month.

However in a reversal of that decision announced on the ASX this morning, the company said mining will continue at its Abydos project during May.

Meanwhile, mining will recommence at Wodgina as soon as possible in May, with processing and haulage restarting shortly after.

Atlas said the decision to continue operating at the projects rather than suspend production as previously announced, is the result of a substantial reduction in forecast cash costs for May at the mines.

The cost reductions were achieved with the support of Atlas’ key service providers .

It is believed Atlas contractors McAleese, Maca and Qube Logistics have offered to forgo some of their payments in order to keep the iron ore miner afloat.

This would mean the contractors would share in some of Atlas’ profit if the iron ore price recovered to a point where mining was viable for the company.

Atlas said it was continuing to assess its operations at the Mt Webber mine.

The company’s shares remain in a trading halt.

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