Cadence Minerals (KDNC) has confirmed that DEV Mineração has secured the Operating Licence for the Azteca processing plant at the Amapá Iron Ore Project in Brazil, clearing a key regulatory milestone as production commences at a reduced rate.
The five-year licence, issued by the Amapá State Environmental Secretariat, authorises iron ore processing at Azteca and satisfies the remaining condition for the release of US$1.15 million in working capital under the project's existing US$4.6 million prepayment offtake facility.
DEV has commenced mining and processing operations at a reduced rate while access improvements and site preparations continue. The working capital will support the mobilisation of additional mining equipment and operating personnel, with full-rate production expected about two weeks after the funds are received.
Azteca retains its production target of ~380,000 tonnes per annum of ~65% iron concentrate, based on design-grade feed. Contracts for heavy mobile equipment and personnel are expected to be finalised shortly, while haulage and port-handling arrangements are at an advanced stage.
The company continues to target its first shipment of ~45,000 to 48,000 wet tonnes before the end of 2026, subject to funding drawdown, plant performance and logistics. Around 2,800 wet tonnes of concentrate produced during commissioning are already stockpiled on site, pending assay results and confirmation of product specifications.
Meanwhile, optimisation testwork is progressing as planned, with the on-site laboratory expected to become operational by the end of November. Bridge refurbishment works are also advancing to support concentrate transportation to port.
Cadence holds an indirect 36.2% interest in the Amapá Project, which hosts a resource of 276.2 million tonnes at 38% iron.
Cadence Minerals' Chief Executive Officer Kiran Morzaria said: “The Installation Licence allowed us to rebuild the plant. The Operating Licence allows us to run it and sell what it produces. We now have both, and since the construction funding arrived in May, the work has run within days of the schedule we set.
“The licence releases the working capital for the fleet and people needed to run at full rate. We are starting now at a smaller scale, and full mobilisation takes about two weeks from the day the funds land. Our aim is still a first shipment before the end of the year, provided the drawdown, mobilisation and logistics come together as planned.
“Azteca is the first operating step, and the larger DR project is the main prize. Production and cash flow are the strongest statements we can make about this asset. Once Azteca has covered its costs and repaid the facility, its cash is intended to pay for the Definitive Feasibility Study and the port and rail licences, so the project funds its own next stage.”
View from Vox
Securing the operating licence represents a significant milestone in Cadence's transition towards commercial production at Azteca. With initial operations underway and full-rate production expected following the working capital drawdown, attention now turns to operational ramp-up and the targeted first shipment before year-end. Successful execution could establish an initial cash-generating operation while supporting the longer-term development of the substantially larger Amapá DR Iron Ore Project.