Cadence Minerals plc’s partner and operator DEV Mineração S.A. has received an installation licence (LI) for the Amapá iron ore project, including the restart of the Azteca plant, in northeast Brazil.
PRODUCTION
The LI covers approved works of refurbishment and replacement of existing operational structures, construction of new processing components – including magnetic separation, ball mill and screening circuits – and site infrastructure.
Azteca will initially process partly processed material to establish operations and early cash flow, as well as funding for the definitive feasibility study.
Following completion of the work, DEV will progress its application for an operating licence (LO) needed for commercial operations and shipments.
Subject to approval, commissioning remains on schedule for the end of June 2026.
The larger Amapá project is an integrated iron ore operation with established mine, rail, port and beneficiation infrastructure.
The project contains a JORC-compliant mineral resource of 276 million tonnes at 38% iron and a proven and probable ore reserve of 195.8 million tonnes at 39.34% Fe.
FUNDING
Cadence said that the previously agreed binding US$4.6 million (£3.4m) prepayment off-take facility would provide funding for licensing, refurbishment, commissioning and initial working capital.
As at the end of March 2026, the company’s investment in the Amapá project was approximately $16.1m (£11.9m), representing a 36.2% equity stake.
Chief executive officer Kiran Morzaria added: “The grant of the installation licence is a major milestone for DEV and for Amapá.
“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.
“Azteca provides a clear pathway to near-term production and cash flow, while supporting the longer-term development of the Amapá project and the enduring benefits it can bring to the State.”