Pilbara iron ore miner Atlas Iron says it’s close to finalising contracts for around 60 per cent of next year’s production after clinching some new deals with customers thanks to strong demand.

Atlas has been negotiating with Chinese steel mills and trading houses following heavily oversubscribed requests for new production.

The company said it had completed a number of new sales contracts for its Pilbara Direct Shipping Iron Ore.

Atlas said it had received attractive terms for its product.

Further contracts for up to an additional 20 per cent of production were nearing completion and the remaining production would be retained for sale into the spot market.

Managing director Ken Brinsden said it was very pleasing to see such strong demand across the company’s product range and improved financial terms in the contracts.

At 1455 AEDT Atlas shares were 10 cents, or nine per cent, higher at $1.20.