atlas believes negativity over io overstated

Atlas head believes negativity over iron ore overstated

Updated 3 hours 37 minutes ago

Atlas Iron says it believes negativity around investment in the iron ore market is being overstated.

The miner is pushing ahead with plans to develop a new iron ore mine in the Pilbara, with its board approving the $146 million needed to start the project.

Immediate development works will begin on the site of its Mount Webber Mine, about 230 km south-east of Port Hedland.

Atlas' managing director Ken Brinsden says despite volatility in the market the company has no qualms about progressing with the new project.

"Whilst people have taken a pretty negative view as to where they think the iron ore price might go, the reality today is that we actually get a pretty healthy price and we think there's good money to be made," he said.

"With today's cash cost to production in the order of $47 to $50 a tonne delivered on to a ship in Port Hedland, we think that puts us in a pretty competitive space.

"Whilst the iron ore prices might be volatile, we're also confident that in the long run, as a Pilbara producer, we'll still earn a pretty healthy margin."