Centaurus delays commissioning of Jambreiro iron ore project

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The revised target schedule was driven by negotiations with potential offtake customers in the Brazilian domestic steel industry and the opportunity to establish a life-of-mine contract, according to a statement from the Australia-listed company on Tuesday May 28.

“For any steel mill customer in south-eastern Brazil, a new life-of-mine offtake will require them to progressively alter their currently contracted sinter feed sources.

“The implementation of this operational redirection by the steel mills will require additional time, as will the need for both parties to carefully establish the terms of the contracts in order to deliver strong mutual benefits,” the company said.

Centaurus aims to complete a funding package for the project “in the coming months”. Full on-site construction of the permanent works at Jambreiro is expected to commence towards the end of the third quarter of 2013.

Jambreiro is expected to have an initial run rate of 2 million tpy.