Aim-listed Cadence Minerals has been granted a preliminary environmental licence for its 35.7%-owned Amapá iron-ore project, in Brazil, as it works to refurbish and restart this historic operation.

This major regulatory milestone confirms environmental feasibility for the full planned mine capacity of 5.5-million tonnes a year of direct high-purity iron-ore concentrate, including openpit mining, mineral processing, waste rock handling and tailings storage.

The company explains that the environmental licence covers the entire development envelope of the project, including the Azteca processing plant.

CEO Kiran Morzaria says the environmental approval represents a material de-risking event for the company and establishes a clear regulatory pathway toward construction and production.

Meanwhile, he confirms that installation licence requirements are advancing as planned, supporting continued momentum toward refurbishment and production.

The installation licence authorises construction, refurbishment and installation of mine infrastructure, including processing facilities and tailings structures.

This licence remains subject to technical and regulatory requirements, including archaeological studies and water abstraction and effluent discharge authorisations.

The Amapá project is a fully integrated iron-ore operation with established mine, rail, port and beneficiation infrastructure. The project hosts a mineral resource of 276-million tonnes grading 38%, and a proven and probable ore reserve of 195.8-million tonnes grading 39.34%.

An updated prefeasibility study on the project finds it has the potential to produce direct reduction-grade concentrate grading 67.5% over a 15-year mine life.

As part of a staged redevelopment strategy, the fully funded Azteca processing plant is planned to be recommissioned as the initial production facility, targeting about 380 000 t/y of concentrate from existing tailings.

This initial production is intended to generate early cash flow to support ongoing operations and the broader development of the project, subject to permitting.

Historically, production reached peak output of 6.1-million tonnes at Amapá in 2012 before operations were suspended in 2014 owing to a port failure, leading to dormancy until Cadence and Indo Sino acquired control of the operation.