On May 26, Australian iron ore producer Atlas Iron announced that its Wodgina direct shipping ore (DSO) project in the Pilbara region of Western Australia will commence production by January 2010.
Accordingly, the company is targeting initial production of two million mt per year in the first quarter of 2010, increasing to three million mt in the second quarter.
Releasing the conclusions of the company's interim feasibility study, Atlas estimated that it would cost only AU$9.5 million (US$7.34 million) to bring the project into production, while its cash operating costs are estimated at between AU$37-45/mt (US$28-35/mt).
Commenting on the project Atlas managing director David Flanagan said, "Wodgina is looking fantastic. Low strip ratios, low capital and operating costs, minimal environmental impact and closeness to the world's largest iron ore export port present a huge opportunity for Atlas shareholders. Wodgina is going to give us economies of scale, significantly improving our competitive advantage on cost and quality for many years to come."
"The results produced by our exploration team to date have been nothing short of spectacular. With their continued success at the Wodgina, Abydos, Mt Webber and Pardoo projects, we are increasingly confident of our ability to reach export tonnages of 12 mt million per year in 2012," Mr. Flanagan added.