Cadence Minerals (KDNC) said cold and wet commissioning is underway at the Azteca processing plant at the Amapá Iron Ore Project in Brazil, following mechanical completion.
The update comes after the Amapá State Environmental Secretariat (SEMA/AP) completed its site inspection associated with hot commissioning. No issues were raised during the visit, with DEV Mineração awaiting the authority’s response.
Cold commissioning is testing equipment, electrical distribution and control systems without ore, while wet commissioning is introducing process water and trial material through the wet circuit ahead of hot commissioning.
The next milestone is hot commissioning, when the plant is expected to operate at 25%-50% of capacity using material that has previously undergone crushing, grinding and concentration. The testing will assess plant performance and allow operating parameters to be adjusted to tune concentrate grade and recovery. Any concentrate produced during commissioning will be stockpiled.
Hot commissioning remains subject to completion of the preceding tests and applicable regulatory requirements.
Cadence holds a 36.2% equity interest in Pedra Branca Alliance, which owns 100% of DEV, the owner and operator of the Amapá Project. As of 31 May 2026, Cadence’s total investment in the project was ~US$16.1 million.
The Amapá project is a fully integrated iron ore operation with mine, rail, port and beneficiation infrastructure. It has a JORC-compliant Mineral Resource of 276.2Mt at 38% Fe and a Proven and Probable Ore Reserve of 195.8Mt at 39.34% Fe.
An updated Pre-Feasibility Study published in December 2024 outlined potential production of 5.5Mtpa of 67.5% Fe direct reduction grade concentrate, with a post-tax NPV (10%) of US$1.97bn over a 15-year mine life.
As part of its staged redevelopment, Azteca is intended to be recommissioned as the initial production facility, targeting about 380,000tpa of about 65% Fe concentrate from existing tailings. The initial operation is intended to generate early cash flow to support operations and the wider redevelopment of Amapá.
Cadence Chief Executive Officer Kiran Morzaria said: "The SEMA inspection is an encouraging step towards hot commissioning, with no issues raised during the visit, although we await the authority's response.
"When I visited Azteca shortly before mechanical completion, it was good to see the progress first-hand and a team eager to put the plant into operation. Their work is now moving into the testing stage, where the priority is to demonstrate plant performance.
"For Cadence, successful production at Azteca would demonstrate our ability to operate at Amapá and establish initial cash flow to support the larger redevelopment. Completing commissioning and securing the Operating Licence are the next steps towards that goal."
View from Vox
Azteca has now moved from refurbishment into commissioning, with the SEMA/AP inspection completed without issues raised. Hot commissioning and the Operating Licence are the key near-term milestones before production can begin.