The company said the cost covered material damage and business interruptions.

At this stage the estimates were preliminary.

The nine-month period covers time to rebuild the plant and ramp up production to where it was before the fire.

The fire hit the plant on February 4 and no personnel were injured in the incident.

In other updates, Atlantic said holders of Midwest Vanadium’s senior secured notes have pledged not to take action before next Tuesday following the company’s failure to pay its interest obligations.

Midwest failed to deposit $US5 million ($A5.5 million) into its interest reserve account and pay the half yearly interest on the senior notes, due last Saturday.

The move was foreshadowed by Standard & Poor’s last week, after it lowered the credit rating for Midwest from CCC to CCC- and said the company would have difficulty meeting the interest obligations.

Midwest has 30 days grace to make the interest payment and discussions are underway to arrange further delays and a long-term solution to the funding requirements.

“The progressive insurance payments and the proposed long-term funding solution under discussion are designed to enable the business to continue, to rebuild the beneficiation plant and recommence vanadium production as soon as possible,” the company said.

The fire is the latest setback for the plant – formerly owned by Mineral Resources – which has faced several performance issues.

Atlantic previously said it had spent more than $A20 million rectifying issues at the plant and had suffered losses estimated at $100 million.

The company is conducting a legal investigation into the operation but MinRes claims it is not liable for any alleged defects or issues.

Atlantic remained in a trading halt today at 17.5c, with further updates pending.