ATLAS Iron aims to decide whether to build a new mine in the Pilbara region by the end of next month, a move that comes against a backdrop of iron ore prices at 7 month low.

Perth based Atlas, which is aiming to produce 15 million tonnes of iron ore a year by the end of 2015. It has received final approvals to build the Mount Webber mine from state and federal government environment ministers.

Iron ore prices fell to USD 112.90 per tonne their lowest level since October 16, as traders fretted about weak steel demand in China and the country's future imports of the steelmaking material.

BHP Billiton, the world's biggest mining company by value said that a jump in scrap steel supplies in coming years would limit China's incremental appetite for iron ore.