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Atlas resumes mining at Wodgina

Operations at Atlas Iron's Wodgina minsite. Picture: Bill Hatto/The West Australian.

Atlas Iron says it has resumed mining at its Wodgina operations in the Pilbara after halting production last month because of the plunging iron ore price.

The company announced this afternoon that mining had resumed on Friday and that crushing operations would recommence on Thursday.

Atlas was able to restart operations because of an improving iron ore price and after signing agreements with its three key contractors to cut operating costs.

Managing director Ken Brinsden said with the Abydos and Wodgina mines both up and running, the company was on track to achieve the full benefit of the contractor collaboration agreements, for the benefit of our shareholders, collaborating contractors and all employees.

“We expect to achieve a production rate of 9mtpa from Abydos and Wodgina by the end of June 2015, with shipping at Mt Webber expected to recommence in the September quarter, as we build towards our year-end production run rate of 14-15mtpa,” he said.

“Again its worth pointing out this is all only achievable with the continued hard work of many good people.”

Last week, Atlas announced the State Government had agreed to $12 million in royalty relief for the embattled miner.

Earlier this month, Atlas announced an industry-first profit sharing deal with contractors MACA, Qube and McAleese, that enabled it to resume operations and save the immediate loss of 700 jobs.

Iron ore was trading at $US61.18 a tonne at the Chinese port of Qingdao yesterday.

Atlas shares are still in suspension having last changed hands for 12 cents.

The company's shares are expected to resume trading once its beds down an expected $180 million capital raising.