International iron ore company Centaurus Metals revised the development plan for its flagship Jambreiro Iron Ore Project in south‐east Brazil after production commenced at the facility at 1Mtpa with the ability to subsequently increase to 2–3Mtpa.
This revised development strategy is expected to result in a substantial reduction in pre‐production capital, enabling Centaurus to commence development with significantly less financing risk and in the shortest possible timeframe to take advantage of continued strong iron ore prices. Under the revised production base, development would commence in April 2014 with first production targeted for Q1 2015 (as previously planned).
Centaurus is continuing to progress discussions with a leading Brazil‐based iron ore and steel group in respect to off‐take and encompassing a potential life‐of‐mine, take‐or‐pay arrangement. The off‐take arrangement depends on the re‐commencement of construction of a new port development in the south‐east region of Brazil. The date for finalising the off‐take arrangements has not yet been set due to their dependence on external logistical and infrastructure‐related factors.
