14th Apr 2020 17:51
(Alliance News) - Cadence Minerals PLC said Tuesday its Amapa iron ore project in Brazil has been granted approval from the Commercial Court of Sao Paulo for the shipment of iron ore stockpiles.
The natural resources firm also said that Hastings Technology Metals, Cadence's joint venture partner on the Yangibana rare earth project in Western Australia announced that the project has been granted the Commonwealth environmental approval.
This means that all Commonwealth approvals have been granted for the construction and operation of an open pit rare earths mine, processing facility and associated support infrastructure.
For the Amapa project, Cadence is now liaising with local authorities to obtain the required licenses and permits to rapidly commence exports, and have already received federal authorisation for the exporting of the iron ore.
The first shipment from the stockpile is expected to be late in the second quarter of early in the third quarter of 2020. Proceeds from sales of the iron ore will mainly be used to pay labour and small creditors, as well as bring the Amapa project back into production.
"For Cadence, this a significant step forward for the redevelopment of the fully integrated Amapa iron ore project. We are truly entering the operational phase of the asset, and despite the current turbulent and volatile market conditions, the iron ore prices remain robust. The whole Cadence and JV team have been active in delivering an excellent outcome for Amapa," said Chief Executive Officer Kiran Morzaria.
"The shipment of the iron ore stockpile at the port of Santana will now trigger long overdue payments to hundreds of local ex-employees and small creditors. It will assist with funding the necessary recommissioning studies required to re-open the mine, which will, in turn, will rejuvenate the regional economy and provide significant employment, health and educational benefits for its people," Morzaria added.
Shares in Cadence Minerals closed 74% higher at 5.65 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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