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Australian Atlas Iron Begins Mining At Pardoo Iron Ore Project
= Weakening iron ore demand leads Atlas to review mining schedule =
Australian iron ore developer Atlas Iron Limited announced October 20 that following receipt of final approvals to mine at the Company's 100% owned Pardoo iron ore project, mining there has duly commenced and ore is being stockpiled on site prior to being hauled to the port of Port Hedland. The project is located 75 km by road from Port Hedland, in the Pilbara of Western Australia.

The falling of iron ore demand in the market over recent weeks has led the Company to complete a detailed review of the Pardoo mining schedule and the anticipated demand for its iron ore product in the short to medium term. The Company has concluded that the Pardoo Project remains robust within the range of current and foreseeable pricing scenarios. The Pardoo Project, besides, has a relatively low capital cost so that it mitigates much of the risk in this decision. Although the Company is still intent on meeting its shipping timetable for early December, it will depend on a prompt execution of a sales agreement.

Atlas Iron is planning to export 1 million tonnes (Mt) during its first 12 months of operations of the Pardoo Project, growing to 3 Mt/a within 12 months. Together with additional export tonnages from Abydos, the Company is targeting exports of 6 Mt/a by 2010, growing to 12 Mt/a by 2012.
last modified : Fri 24 Oct, 2008 [11:11]
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