Atlas Iron’s second commercial shipment of iron ore will set sail for a large Chinese steel mill.

The company said the customer was a large Chinese steel mill but declined to reveal its name.

The 64,300-tonne shipment came from the Connie deposit at Atlas’ Pardoo mine south of Port Hedland.

This is another important milestone for Atlas in its evolution from explorer to iron ore producer,” managing director David Flanagan said in a statement.

Atlas shipped its first commercial cargo of the bulk commodity last month, six weeks after commencing mining at Pardoo.

The first shipment, of 65,000 tonnes, was also from the Connie deposit.

It was sold to an unnamed medium-sized Chinese steel mill.

Atlas in December entered a long-term offtake agreement with a party matching the description of a medium-sized Chinese steel mill for 30 per cent of the direct shipping ore produced at Pardoo.

Mr Flanagan recently told AAP there was fierce competition among the mills to secure sales deals for the remaining ore from the mine.

Shares in the miner inched 2.5 cents higher to $1.405 by 1.35pm.

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