Jambreiro production start-up delayed to 2015 – Centaurus
PERTH (miningweekly.com) – Iron-ore developer Centaurus Metals has pushed back the maiden production date from its flagship Jambreiro project, in Brazil, from the middle of next year to the first quarter of 2015.
The miner said on Wednesday that it had delayed production to align iron-ore supply with the delivery requirements of a potential offtake customer.
In May, Centaurus pushed back the development schedule of Jambreiro by six months, from the end of 2013 to mid-2014, as it worked to secure offtake agreements.
The miner said that offtake discussions have advanced significantly over the last two months, adding that it was close to finalising terms with a leading Brazilian iron-ore and steel group for the long-term supply of iron-ore concentrate.
The negotiations were expected to pave the way for a life-of-mine, take-or-pay offtake agreement.
“After several months of discussions and negotiations, we are now very close to completing a long-term take-or-pay arrangement, for the supply of iron-ore into the Brazilian domestic steel sector, that will underpin the future of the Jambreiro project and the company,” said MD Darren Gordon.
He noted that with several key terms and principles of the offtake arrangement in place, Centaurus was now working through the final detail.
“While this work has effectively resulted in a further change to our delivery timetable, we believe the benefits of securing a quality, long-term offtake partner far outweigh what is in the scheme of things, a relatively minor adjustment to our schedule,” Gordon added.
With the offtake terms expected to be completed in October, Centaurus was working towards the start of construction by March next year. In the meantime, the company would continue to advance its detailed engineering and design work, and would lock down any further savings in the capital cost estimate for the project.
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