Atlas Iron has reiterated it is on track to hit its production target of 12mtpa by December with further developments at its Abydos project and expansion at Utah Point.
The Pilbara iron ore miner, which announced first production from its Mt Dove mine on Friday, said this morning pre-strip mining and site access earthworks had begun at its Abydos mine with first production and haulage expected by June.
The company is targeting a production rate of 2-3mtpa at Abydos.
"Further supporting Atlas' expansion plans, the company is also pleased to announce that it has expanded its 'umbrella' haulage agreement with IES Resources, to support the expanded production arising from the inclusion of the Abydos mine in the Atlas North Pilbara portfolio," the company said in a statement.
Atlas also said announced expansion works at Utah Point to cater for the additional tonnages were well underway.
Atlas managing director Ken Brinsden said he was pleased with the achievement of important mining, production and infrastructure development milestones as part of the company's horizon one growth strategy.
"We are also pleased to see the return of positive sentiment to the iron ore sector with a strong rebound in iron ore prices and plenty of activity from Atlas' customer base," he said.
"Atlas' low-cost production growth strategy and expanding production base puts us in a great position to benefit from these improved conditions, just as it enabled us to weather the volatile trading conditions experienced last year."
Atlas shares were up 6.5 cents, or 3.59 per cent, to $1.875 at 7.40am.