PERTH (miningweekly.com) - Iron-ore miner Atlas Iron has reported that its 12-million-ton-a-year production target was on track after production was started at the Mount Dove mine, and progress was made at the Abydos mine and the Utah Point yard 2 projects.

Production at Mount Dove started at the beginning of January, which would increase Atlas’ north Pilbara production rate to eight-million tons a year by the March quarter.

With the start of production at Mount Dove, Atlas was expected to export between 7.2-million and 7.7-million tons of iron-ore in the 2013 financial year.

“Its great to be starting the New Year on a very positive note with the achievement of these important mining, production and infrastructure development milestones as part of our Horizon 1 growth strategy,” said Atlas MD Ken Brinsden on Monday.

“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.”

“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 enables us to weather the volatile trading conditions experienced last year,” Brinsden added.

Major mining activity had started at the Abydos mine, with the start of pre-strip mining and the site access earthworks.

First production and haulage to port was expected for June this year, at a rate of between two-million and three-million tons a year, and would help to underpin Atlas’ Horizon 1 production target of 12-million tons a year.

Atlas has also expanded its umbrella haulage agreement with IES Resources to support the expanded production from the inclusion of the Abydos mine in the Atlas north Pilbara portfolio.

Meanwhile, works were also well under way on the development of the Utah Point port facilities, in Port Hedland, which would further expand Atlas’ port capacity over the remainder of the financial year, and which would enable the facilities to accommodate the additional tonnages from both the Mount Dove and Abydos mines.