PERTH (miningweekly.com) – Iron-ore developer Centaurus Metals has moved a step closer to production at its flagship Jambreiro project, in Brazil, after its economic development plan was approved by the Brazilian Federal Department of Mineral Production.

The economic development plan was the primary technical document in the mining lease application process, and demonstrated both the commercial viability as well as Centaurus’ capacity to implement it.

Centaurus said on Monday that in conjunction with the previously received approval of the environment-impact assessment, the economic development plan approval now provided the basis for the environmental control plan to be approved, and Minas Gerais state's Environmental Committee to issue the installation licence.

The installation licence was expected by April this year, clearing the way for on-site construction to start.

Centaurus MD Darren Gordon said on Monday that the approval of the economic development plan represented another important step forward in the development schedule at Jambreiro, and reflected the diligent and efficient management of the approvals and permitting process in Brazil.

“The team in Brazil continues to deliver against our timetable, and we are continuing to work our way towards production by the end of the year, systematically ticking all of the boxes required to allow the Jambreiro development to move ahead on time.”

Gordon noted that with the economic development plan now approved, the focus of the approvals process could center on securing the installation licence during the course of April, putting the company in a position to start on-site construction shortly thereafter.

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.