Australian iron ore miner Atlas Iron has announced an increase of 7 million mt in its total Pilbara iron ore reserves to 507 million mt, further strengthening the company's existing operations, near-term development projects and its longer-term growth strategy. Considering the approval for the Mt Webber mine development as well as the reserve updates, Atlas expects 9.8-10.3 million mt of iron ore production in the financial year 2013-14.
In the quarter ended on June 30, Atlas shipped a record 2.22 million wet metric tons of iron ore, up 48 percent compared to the same quarter of 2012. During the full financial year 2012-13, the company's iron ore shipment amounted to 7.4 million mt, increasing by 25 percent year on year.
According to Atlas, iron ore prices fell in the June 2013 quarter amid concerns of tightening credit in China and the level of steel inventories. Pricing has recovered strongly commencing late June as steel inventories have been drawn down and iron ore inventories in China remained comparatively low. Atlas' average sales price for its standard product was US$107/mt CFR in the June quarter, down from US$126/mt CFR in the March quarter.