Centaurus hopes for early start at Cardonga
PERTH (miningweekly.com) – Iron-ore developer Centaurus Metals was hoping to start production at its Candonga mine, in Brazil, within the next 9 to 12 months.
At the company’s annual general meeting, nonexecutive chair Didier Murcia said that the project could be developed at low capital costs, owing to the processing route being a simple dry crushing and screening facility, that was extensively available in Brazil.
The Candonga project, which is some 33 km from Centaurus’ flagship Jambreiro project, has a maiden Joint Ore Reserve Committee-compliant resource of 11.9-million tonnes, grading 43% iron.
Centaurus has lodged an application with the Department of Mines for a 300 000 t/y trial mining licence at Candonga, marking the next step in the planned development of a small-scale direct shipping ore (DSO) mining operation.
“We are strongly of the view that the high-grade DSO lump and coarse sinter material at Candonga, which is in very scare supply and still attracts premium prices in the domestic market, should be able to provide shareholders with the ability to benefit from a positive cash flow stream while the development activities at Jambreiro are finalised,” Murcia said.
Meanwhile, Murcia added that offtake discussions for the company’s Jambreiro product were continuing.
He pointed out that these discussions had been delayed as the company awaited the restart of construction of the Sudeste port, in the south-eastern region of Brazil.
“The port construction work has now restarted late in the March quarter, with commissioning of the new port expected later this year. Accordingly, offtake discussions remain active and we continue to be confident of securing long-term offtake agreements in due course to facilitate the funding requirements for the development of Jambreiro.”
The Jambreiro project was expected to start production in the first quarter of 2015.
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