Cadence Minerals (KDNC ) has moved a significant step closer to production of iron ore at the Amapá project in Brazil.
The company’s partner, DEV Mineração, which owns and operates Amapá, has received the Installation Licence from the State of Amapá Environmental Authority, Secretaria de Estado do Meio Ambiente.
Cadence owns a 36.2% stake in Amapá.
The Installation Licence, or LI, authorises refurbishment, construction and installation works within its scope at the Amapá site, including those required for the restart of the Azteca plant and the larger US$1.9 billion NPV Amapá project.
The immediate operational focus remains the restart of Azteca as a low-capital reprocessing operation, intended to provide the first operating platform and near-term cash flow for Amapá.
Azteca now moves from engineering, funding and regulatory preparation into site mobilisation and delivery. The next step will be for DEV to secure an operating licence. Commissioning of Azteca is expected in June of this year.
The initial phase targets the processing of partly processed material to establish operations and early cash flow. The restart is fully funded via a binding US$4.6 million prepayment offtake facility.
"The grant of the Installation Licence is a major milestone for DEV and for Amapá,” said Kiran Morzaria, chief executive of Cadence Minerals.
“It marks the transition of the project into its next phase - from preparation into approved execution and then production. Azteca is positioned as the practical first step in bringing Amapá back into production. It is supported by a fully funded structure, benefits from existing plant, and is designed to establish the initial cash-flow platform for the wider project. Our focus is now on disciplined delivery - mobilisation, procurement, licence compliance, refurbishment and commissioning.”
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This is a key moment for Cadence, one for which it has been carefully preparing. Amapá now moves towards commissioning in June, subject to the grant of an operating licence, which itself is subject to successful installation. But June is pretty close, so it won’t be long before cashflow from Azteca starts coming in and the company can turn its thoughts to the main event – the development of the wider project and production of 5.5 million tonnes per year. This is transformational stuff, and just what junior miners are made for.