Atlas Iron plans to make a decision on building a new mine by the end of the financial year after reiterating its overall production guidance.
Shares in the emerging Pilbara iron ore miner fell 4.5 per cent to $3.37 at 1130 AEST despite the company saying it’s on target to ship at a rate of 10 million tonnes per annum during the September quarter.
It comes as the iron ore price hovers around a seven month low of $US117 per tonne and as fellow iron ore producers take a battering on the local market.
Perth-based Atlas has previously said it believes the iron ore price will trade around $US120 to $140 per tonne over the medium to long-term, while analysts tip it could trade lower than $US100 per tonne over the longer term.
Atlas aims to produce 12 million tonnes of iron ore per year by the end of 2013 and 15 million tonnes a year by the end of 2015.
In a statement the company said it has received final state and federal mine environmental approvals to develop its Mt Webber mine.
“With the detailed joint venture negotiations progressing with its minority project partner Altura, Atlas is targeting referring the project to the Atlas board by 30 June 2013,” the company said in a statement.
Atlas added that it is on track to ship 2.2 million tonnes in the June quarter.
Construction at Atlas’ new Abydos Mine is progressing on time and on budget and the company says it’s well advanced in the development of its expanded port stockyards at Utah Point Yard 2 in Port Hedland.
