https://www.miningweekly.com

Centaurus signs MoU with Brazil state

18th January 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) - Iron-ore developer Centaurus Metals has signed a memorandum of understanding (MoU) with the state of Minas Gerais, as well as other key state departments, to facilitate the development of its flagship Jambreiro project, in Brazil.

The ASX-listed Centaurus said on Friday that the MoU would result in important fiscal concessions and the provision of project facilitation benefits, and recognised the significant social and economic benefits that would be generated by the A$136-million development.

The framework agreement, which Centaurus said was similar to the preferred project status that existed in most Australian states, was expected to deliver important tax concessions, resulting in significant capital and operating cost savings for the Jambreiro project.

“The development of Jambreiro will see Centraurus initially invest some A$136-million in the state of Minas Gerais, generating around 1 000 jobs during construction and 500 direct and indirect jobs during steady-state operations, as well as creating significant opportunities for training and skills development for local residents,” said Centaurus MD Darren Gordon.

He noted that the MoU demonstrated the strong commitment from the state government to facilitate the development of new resources projects, and to encourage and stimulate economic activity in the state.

Under its terms, Centaurus had committed to preferentially source local employees for the project and to using local suppliers and service providers, including engineering project and civil construction companies.

In exchange, Centaurus would be exempt from paying taxes on certain items of capital plant and equipment imported from abroad, as well as on goods acquired from other Brazilian states where no similar goods were produced in Minas Gerais.

The project would also be subject to preferential tax treatment for the iron-ore products to be produced and sold to local steel mills in the region.

The Jambreiro project would produce an estimated two-million tons of product a year, over a nine-year life-of-mine, based on a Joint Ore Reserves Committee-compliant resource of 125-million tons, grading 26.7% iron.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.184 0.221s - 106pq - 2rq
Subscribe Now