- Cadence Minerals
- 13 March 2026 14:16:47
Source: Sharecast
The AIM-traded firm said detailed mechanical and electrical engineering studies for the Azteca plant had now been completed and an execution package put in place, including procurement requests for critical refurbishment items and contractor mobilisation plans for a 90-day execution programme.
Preparatory activities permitted ahead of the main refurbishment programme were scheduled to start in March, including structural steel repairs, removal of motors and pumps for refurbishment, and procurement of long-lead equipment.
Cadence said the early activities were intended to provide flexibility in the project’s development schedule while the remaining workstreams required for the installation licence continued to progress.
Commissioning of the Azteca plant was currently targeted for the end of June, subject to the required permits and completion of execution works.
The remaining licensing requirements included archaeological clearance from Brazil’s Instituto do Patrimônio Histórico e Artístico Nacional (IPHAN), water abstraction permits and tailings-related approvals from the state environmental authority SEMA/AP.
Cadence said it had submitted an archaeological report to federal IPHAN and continued to engage with the regulator as part of the licensing process, while SEMA/AP was reviewing an amended application following a recent technical inspection.
Chief executive Kiran Morzaria said the completion of engineering studies marked an important step toward recommissioning the facility.
“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.”
He added that the project was now moving beyond planning into execution readiness.
“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.”
Cadence said the Azteca plant formed the first stage of its broader redevelopment strategy at the Amapá iron ore project.
The company and its partners had established a funding structure to support licensing, refurbishment and initial working capital, with the plant expected to provide an initial production platform and near-term cash flow once operational.
The Amapá project hosts 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% iron.
An updated pre-feasibility study outlined the potential to produce 67.5% iron direct-reduction grade concentrate at 5.5 million tonnes per year, with a post-tax net present value of $1.97bn over a 15-year mine life.
Cadence held a 35.9% equity stake in the project as of the end of December.
At 1258 GMT, shares in Cadence Minerals were down 5.62% at 4.2p.
Reporting by Josh White for Sharecast.com.