Cadence Minerals has secured a significant regulatory milestone with the approval of a Licença Prévia (LP), or preliminary environmental licence, for its Amapá Mine in Brazil. This approval, granted by the Secretaria de Estado do Meio Ambiente, Amapá’s state environmental agency, verifies the mine’s environmental suitability, site location, and design for full-scale operations. The licence covers open-pit mining, mineral processing, waste rock management, and tailings storage facilities, all within the project’s current mining concessions.
The Amapá iron ore project is a fully integrated operation, boasting existing mine, rail, port, and beneficiation infrastructure. It holds a Joint Ore Reserves Committee (JORC)-compliant mineral resource of 276 million tonnes (mt) at 38% iron and a proven and probable ore reserve of 195.8mt at 39.34% iron. The LP is not just a green light for initial operations but validates the entire mine development plan, providing regulatory assurance for the long-term layout that underpins Cadence Minerals’ phased redevelopment strategy.
This approval is a game-changer for the project’s timeline. It allows for the permitting of the Azteca processing plant, which is set to be recommissioned as the first production unit in the staged restart. During this phase, ore will be trucked and exported via an existing public port, enabling initial production without waiting for rail infrastructure and a private port to be licensed.
Kiran Morzaria, CEO of Cadence Minerals, expressed his optimism: “This is a highly significant regulatory milestone for Amapá. The grant of the preliminary licence confirms environmental acceptance of the mine at its full intended scale and marks a decisive step forward in the project’s redevelopment. Importantly, the LP validates the complete mine plan and provides the regulatory foundation to advance the Azteca processing plant as the first step toward production. With this key de-risking milestone achieved, our focus now turns to securing the installation licence and progressing refurbishment activities in line with our staged development strategy.”
The next phase in the regulatory process is the Licença de Instalação (LI), or installation licence, which will permit construction, refurbishment, and installation of mine infrastructure, including the processing plant and tailings facilities. To advance to the LI, Cadence Minerals must meet specific technical and regulatory conditions, including providing additional technical studies such as archaeological assessments and engineering work. The archaeological studies have already been finalised and delivered to the Instituto do Patrimônio Histórico e Artístico Nacional, Brazil’s federal cultural heritage authority. Authorisations for water abstraction and effluent discharge have also been completed.
This development could set a precedent for other mining projects in Brazil, demonstrating that comprehensive environmental planning and stakeholder engagement can expedite regulatory approvals. It also underscores the importance of phased development strategies, which can help mitigate risks and ensure sustainable operations.
As the sector watches the progress of the Amapá Mine, the question arises: will this approval spur a wave of similar projects, or will it remain a standout example of successful environmental licensing in the mining industry? The answer may well shape the future of mining in Brazil and beyond.