Cadence Minerals secures installation license for Iron Ore processing plant in Northern Brazil

UK-based Cadence Minerals has obtained the Installation License (LI) to refurbish the processing plant of the Amapá iron ore project, located in the northern Brazilian state of Amapá.

The authorization, granted by the State Secretariat for the Environment (Sema), will allow for the partial resumption of operations that have been halted since 2014 following the collapse of the Santana Port, when the plant was operated by Zamin.

The license authorizes renovation, construction, and commissioning work at the Azteca plant, the project's main beneficiation facility.

With a relatively modest investment of 4.6 million, including 1.15 million in working capital, the plant will achieve an annual production capacity of 380,000 tonnes. The company believes this will generate sufficient cash flow to restore full capacity of 5.5 million tonnes per year of iron ore concentrate with an iron content of 67.5%, suitable for direct reduction.

A pre-feasibility study conducted in 2024 indicated that the project would deliver a net present value (NPV) of $1.9 billion over 15 years of operation.