22nd Mar 2024 11:58
(Alliance News) - Cadence Minerals PLC announced on Friday the successful completion of a capital expenditure optimisation programme at its Amapa project in Brazil, alongside identifying USD63.2 million in cost savings.
The London-based mineral resource investor has invested approximately USD12.1 million into the project with an equity stake standing at 32.6%. The iron ore project consists of a mine, processing plant, wholly owned port and a 194 kilometre railway.
In 2023, Pedra & Branca Alliance Pte Ltd, the owners of the project, employed an engineering firm to conduct an in-depth review of the processing plant with the aim of reducing capital and operating expenditures, and possibly improving iron ore concentrate quality.
Cadence Chief Executive Officer Kiran Morzaria said: "We're thrilled to announce the successful completion of our capital expenditure optimisation program at the Amapa iron ore project. This effort has delivered a substantial 33% reduction in capital costs, saving USD63.2 million and forecasted a 4.8% to 5.5 Mtpa increase in iron ore concentrate production."
Following the study Cadence & PBA have decided to redesign the mine to facilitate cost reductions.
Shares in Cadence Minerals were up 12% to 5.71 pence in London on Friday morning.
By Elijah Dale, Alliance News reporter
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