Cadence Minerals has provided an update on its flagship Amapá iron ore project in Brazil, noting that it has completed detailed engineering studies at the Azteca plant, and says early refurbishment works are set to begin this month.
The AIM-listed company said an active procurement and mobilisation package is now in place, with critical refurbishment items already requested and contractors aligned to a 90-day execution programme.
The update didn’t contain any fireworks, but it shows things are heading in the right direction for Cadence and Amapa.
Cadence holds a 35.9% equity stake in the Amapá project, backed by a total investment of around $15.5 million as of the end of December. Amapa was once operated by Anglo American.
Initial activities at Azteca will include structural steel repairs, removal of motors and pumps for off-site refurbishment, and procurement of long-lead items needed for recommissioning.
These are notable developments for the miner, as these preparatory works fall within the scope permitted ahead of the Installation Licence, which remains subject to three outstanding regulatory requirements: archaeological clearance from the federal heritage body IPHAN, water abstraction permitting, and tailings-related approvals from the state environmental authority, SEMA/AP.
“Completion of the detailed engineering studies marks an important step in moving Azteca towards refurbishment and recommissioning. The work programme is now supported by an active procurement and mobilisation package, with procurement requests already launched for critical refurbishment items and the contractor team prepared for mobilisation,” said Kiran Morzaria, Chief Executive Officer of Cadence Minerals.
“This is important because it moves Azteca beyond engineering readiness and into practical execution planning, while adding flexibility to the critical path as the remaining Installation Licence workstreams continue to progress. Subject to permitting and execution, Azteca remains central to our phased redevelopment strategy at Amapá, with commissioning targeted by the end of June.”