Gina Rinehart's Atlas Iron is seeking a green light to develop a new iron ore project in Western Australia and looking at the potential of mining other deposits as prices spike in the wake of Vale production woes.

Atlas, owned by Mrs Rinehart's Hancock Prospecting, has sought approvals from WA's Environmental Protection Authority for development of the long-stalled Corunna Downs project in the iron ore-rich Pilbara region.