Atlas Iron says it has begun production at its Mt Dove project 65km south of Port Hedland as part of a plan to hit annual production of 12 million tonnes.
The company said it began blasting at Mt Dove in October, mined first ore in November and would begin hauling ore to port within the next week with commissioning of its crushing and screening plant now complete.
Atlas managing director Ken Brinsden said the milestone meant the company had brought three mines into production in four years, the others being Pardoo and Wodgina.
Atlas now planned to open another two mines, Abydos and Mt Webber, before the end of the year.
Mr Brinsden said Atlas remained on track to export between 7.2mt and 7.7mt in the 2013 financial year.
Atlas shares were off 1.5 cents to $1.855 in a broadly weaker market.