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Atlas extends trading suspension

Embattled Pilbara iron ore junior Atlas Iron has requested a three-week extension to its trading suspension to enable it to complete and operational and financial review.

"While Atlas is not in breach of its debt covenants, the recent falls in the iron ore price have left the company with little choice but to gradually suspend production over the month of April," Atlas said in a statement.

"Recognising the significance of the current iron ore price and its impact on Atlas' business, the company is in ongoing discussions with its creditors, contractors and a range of other parties as part of its continuing operational and financial review.

"The company will provide a market update in due course."

Atlas announced earlier this month it would suspend operations at its Pilbara mines by the end of the month. The decision came after the company called a trading halt to review its operations in light of the plunging iron ore price.

The iron ore price was $US51.57 a tonne yesterday after the commodity fell to a low of $US47.08 on April 2.

Shares in Atlas last changed hands for 12 cents.