Brazilian State Awards Cadence Minerals Historic Environmental Licence

Cadence Minerals has secured a Licença Prévia (LP), or preliminary environmental licence, for the Amapá Mine in Brazil from the Secretaria de Estado do Meio Ambiente. This significant achievement confirms that the mine’s environmental suitability, site location, and design are acceptable for operating at its full planned capacity of 5.5 million tonnes per annum (mtpa) of direct reduced-grade iron ore concentrate.

The LP verifies that the project’s environmental aspects have been thoroughly assessed and meet regulatory standards. This approval applies to open-pit mining, mineral processing, waste rock management, and tailings storage facilities within the project’s current mining concessions, covering all aspects of the mine development plan.

The Amapá iron ore project is a fully integrated operation with existing mine, rail, port, and beneficiation infrastructure in place. This existing infrastructure reduces the need for significant investments in new construction and minimizes the risk associated with developing an entirely new mine. The comprehensive infrastructure supports the staged redevelopment of the mine, allowing Cadence Minerals to adapt to changing market conditions and regulatory requirements.

The LP covers the full mine development plan rather than just an initial or temporary operating stage, providing regulatory assurance for the long-term mine layout that underpins Cadence Minerals’ phased redevelopment strategy. This is a significant achievement, as it enables the company to advance its project timeline while maintaining regulatory compliance.

The Amapá iron ore project boasts an impressive mineral resource of 276 million tonnes (mt) at 38% iron and a proven and probable ore reserve of 195.8mt at 39.34% iron, according to Joint Ore Reserves Committee (JORC)-compliant estimates. These reserves provide a solid foundation for the project’s long-term viability and support its potential as a significant source of high-quality iron ore.

The grant of the LP constitutes the first formal step in Brazil’s environmental licensing framework for the mine, marking a major risk-reduction milestone for the project. This achievement is a testament to Cadence Minerals’ commitment to rigorous environmental assessment and compliance with regulatory requirements.

“Cadence Minerals has made significant progress towards bringing the Amapá Mine into production,” said Kiran Morzaria, CEO of Cadence Minerals. “The grant of the preliminary licence confirms environmental acceptance of the mine at its full intended scale and marks a decisive step forward in the project’s redevelopment. Importantly, the LP validates the complete mine plan and provides the regulatory foundation to advance the Azteca processing plant as the first step toward production.”

Advancement to the subsequent phase requires meeting specific technical and regulatory conditions previously outlined by the company. Key remaining steps include providing additional technical studies requested by regulators, such as archaeological assessments and engineering work.

By the end of June 2025, Cadence Minerals had invested roughly $15.5m (£11.48m) in the Amapá project, corresponding to a 35.7% equity interest in the project. This significant investment underscores the company’s confidence in its ability to deliver a successful and profitable iron ore operation.

The grant of the LP is an important milestone for Cadence Minerals, marking a major step towards commercial production at the Amapá Mine. With this achievement, the company has demonstrated its commitment to rigorous environmental assessment and compliance with regulatory requirements, providing regulatory assurance for the long-term mine layout that underpins its phased redevelopment strategy.

As the project moves forward, Cadence Minerals will continue to focus on securing the installation licence and progressing refurbishment activities in line with its staged development strategy. The company’s phased approach ensures that it can adapt to changing market conditions and regulatory requirements while minimizing risks associated with developing an entirely new mine.

The Amapá Mine has significant potential as a source of high-quality iron ore, and Cadence Minerals’ commitment to rigorous environmental assessment and compliance with regulatory requirements is essential for delivering a successful and profitable operation. With the grant of the LP, the company has taken a major step towards bringing this project into commercial production, paving the way for future growth and development in the iron ore sector.

Cadence Minerals’ commitment to rigorous environmental assessment and compliance with regulatory requirements provides assurance that the operation will be delivered in an environmentally responsible manner. As the company moves forward with its phased development strategy, it is essential to monitor its progress and adjust expectations accordingly.

For investors looking to stay informed about the Amapá Mine project, it is crucial to follow Cadence Minerals’ updates on its website or through reputable news sources. By doing so, investors can stay up-to-date on the latest developments and make informed decisions about their investments in the iron ore sector.