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Amapa Iron Ore Mine

Operator: DEV Mineração S.A.

Ownership: ~35–36% (option to increase to 49%)

Location:

Amapa, NE Brazil

Development Stage:

Pre-Feasibility Study

Overview

The Amapá Iron Ore Project is a fully integrated mine, railway, and port operation located in northern Brazil. Once one of the country’s largest producers, the project is being redeveloped under a staged strategy to deliver near-term cashflow and long-term growth

Project Highlights

  • JORC Resource: 276 Mt @ 38% Fe
  • Ore Reserve: 195.8 Mt @ 39.3% Fe
  • Production Plan: 5.5 Mtpa of 67.5% Fe DR grade concentrate
  • Low Costs:
    • FOB: US$27.3/dmt
    • CFR China: US$55.5/dmt (lowest quartile globally)
  • Economics:
    • Post-tax NPV10: US$1.97 bn
    • IRR: 56%
    • Life-of-Mine: 15 years
    • Average annual free cash flow: US$342 m

Staged Development

1. Azteca Plant Restart – Near-Term Cashflow

  • Reprocessing historic tailings (Dyke 5).
  • Target production: ~380,000 tpa of 65% Fe concentrate.
  • Capex: US$3.5 m.
  • Offtake prepay funding secured (US$4.6 m).
  • Forecast: ~US$32 m free cash flow over 3 years.

2. Full-Scale Development

  • Scale up to 5.5 Mtpa of DR-grade concentrate.
  • Pre-production capex: US$377 m.
  • Supported by rail and port infrastructure powered by renewable hydroelectricity.

Licensing & Sustainability

  • Mine, rail, and port installation licences under review with advanced progress.
  • Tailings facility refurbishment underway with remote monitoring.
  • Powered by renewables, carbon intensity ~15 kg CO₂/t (among lowest globally).
  • Major contributor to state economy: historically 82% of export value and 3.5% of GDP.
  • Expected to be the largest private-sector employer in Amapá State.

History

  • 2007: First production by MMX, with Anglo American and Cliffs as partners.
  • 2012: Peak output of 6.1 Mtpa, generating US$170 m profit.
  • 2014: Port failure curtailed exports; operations suspended.
  • 2019: Cadence and Indo Sino acquired control via judicial restructuring.
  • 2022–25: Resource upgraded, Ore Reserve defined, PFS published, costs reduced, and Azteca restart funded.

Ownership

Cadence holds a ~35–36% interest in the Amapá Project via JV Pedra Branca Alliance with Indo Sino Trade Pte Ltd. Option to increase to 49%.