Atlas Iron says China's demand for iron ore remains strong, just as the demand for labour in Australia's resources hotspots begins to cool.
The WA-focused company also confirmed it was on track to double production to 12 million tonnes of iron ore per annum by the end of next year.
This followed an increasing of its shipments by 25 per cent in the June quarter.
Managing director Ken Brinsden said that despite a lower iron ore price, hovering around $US110 to $US120 per tonne, there was nothing fundamentally wrong with demand from China.
"From Atlas' point of view, there's nothing fundamentally problematic," Mr Brinsden said.
"The price will be what it will be. The support to the price side comes through the difficulties the Chinese have in maintaining their own domestic production base."
Last month Atlas reported full-year shipments to June of 5.6 million tonnes, representing a 21 per cent increase on the prior financial year.
Companies would be hard pressed to go past China, which had delivered growth for 30 years.
It was still early days but early indications showed the local resources labour market was beginning to cool.
"Inevitably if BHP and Rio are trimming big projects, then that will take some heat out of the market," Mr Brinsden said.
"It's probably just a bit too early to say what the net impact might be."
Meanwhile, the joint rail feasibility study with QR National on a Pilbara rail link in WA was on target to be completed by the end of the year.He said a further fall in the iron ore price might make the commercial discussions "just a little more challenging".
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