THE BOURSE WHISPERER: Centaurus Metals (ASX: CTM) has secured the key Installation Licence (LI) for the company’s Jambreiro iron ore project in south-east Brazil, clearing the way for on-site construction to proceed.
The granting of the LI – following approval of the Project’s Environmental Control Plans (PCA) – has been achieved ahead of schedule, based on the company’s proposed development timetable.
Centaurus said the granting of the LI marked the final regulatory milestone required to enable construction to commence on site.
“With the Installation Licence now to hand, we are in a position to begin on-site construction,” Centaurus Metals managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.
“Initial development work is already underway and actual site works are planned to begin at the end of this month, subject to completion of a suitable off-take arrangement and finalisation of the overall funding mix.”
Centaurus explained the LI approval enables it to operate at a production rate of three million tonnes per annum of final saleable product.
However, the company initially intends to commence operations at a rate of 2Mtpa.
The PCA was lodged at the end of October 2012 following development of the detailed environmental programs proposed in the EIA/RIMA.
The LI includes all the water permits and vegetation clearing authorisations required to facilitate the development of the project.
“In conjunction with the timely delivery of the necessary Government approvals for the project, the company has continued negotiations with a number of potential customers in relation to off-take in order to facilitate a suitable debt financing package for project development,” Gordon explained.
“These off-take discussions are progressing well and the company is working to conclude a strong off-take position over the next month.”