Name of the Project
Amapá iron-ore project.

Location
Amapá, Brazil.

Project Owner/s
Cadence Minerals holds a 36.2% interest in Pedra Branca Alliance, which owns 100% of the owner and operating company of Amapá, DEV Mineração.

DEV Mineração is the operator.

Project Description
The brownfield integrated iron-ore project has mineral resources of 276-million tonnes at 38.33% iron and ore reserves of 195.8-million tonnes at 39.34% iron. The project comprises the mine, a beneficiation plant, wholly owned port and a 194 km railway, with DEV Mineração as operator.

Cadence and its partners are advancing Amapá through a staged development strategy comprising the Azteca project, which is at the preproduction stage, and the Amapá direct reduction (DR) Project, which is at the prefeasibility stage.

An updated prefeasibility study on the Amapá DR project has found that it has the potential to produce direct reduction- (DR-) grade concentrate grading 67.5 at 5.5-million tonnes a year over a 15-year mine life.

The Azteca plant is forecast to produce about 380 000 t/y of iron-ore concentrate grading at 65% iron from existing tailings, providing an initial operational platform and early cash flow to support the wider Amapá redevelopment, subject to successful commissioning and receipt of the operating licence.

The longer-term development plan for Amapá envisages production of up to 5.5-million tonnes a year of DR-grade iron-ore using integrated mine, processing, rail and port infrastructure under the project's control.

Any expansion beyond the Azteca plant will remain subject to further engineering studies, financing, construction planning and regulatory approvals.

The preliminary environmental licence and installation licence have been granted. The operating licence is yet to be obtained before commercial operations and shipments can start.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Amapá DR Project has an after-tax net present value, at a 10% discount rate, of $1.97-billion and an internal rate of return of 56%.

Capital Expenditure
Preproduction capital investment is estimated at $377-million. The Azteca Project has estimated preproduction capital expenditure of about $3.5-million.

Planned Start/End Date
The Azteca plant is targeting operational readiness by the end of August 2026. 

Commercial operations and shipments remain subject to successful commissioning and receipt of the operating licence. 

Latest Developments
Cadence Minerals has confirmed the start of hot commissioning at the Azteca processing plant as part of the project.

After completing cold and wet commissioning at the plant, DEV has started processing existing feed material to assess throughput, concentrate grade and recovery at plant capacity rates of between 25% and 50%.

The plant is using magnetic separators and spirals to recover iron from existing material that was previously mined, crushed, ground and partly concentrated. The feed comes from historic stockpiles identified in the commissioning plan.

The commercial operation of the Azteca plant remains subject to the successful commissioning and receipt of an operating licence. DEV expects to provide supporting maintenance and environmental monitoring documentation to authorities this week.

DEV aims to produce 380 000 t/y of 65% iron once the plant enters commercial production.

The company is also repairing a nearby bridge, with completion targeted before the first shipment of iron is due from the plant.

Cadence CEO Kiran Morzaria has noted that, with the Azteca refurbishment being complete, the companies now have to prove the performance of the plant. 

He has add that successful operation of the plant could also generate cash to help advance Cadence and DEV's larger Amapá redevelopment strategy, after operating requirements and funding obligations are met.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Cadence Minerals, tel +44 20 3582 6636 or email info@cadenceminerals.com.