Centaurus Metals (ASX: CTM) has awarded a key Management Support Contract to MCA Auditoria e Gerenciamento for the development of its flagship Jambreiro Iron Ore Project in south-eastern Brazil.
This is the first key contract to be awarded for the project’s development.
MCA will form an owner’s team with Centaurus to effectively self-manage and control the project implementation work for the delivery of the Jambreiro Project in a timely and cost effective manner.
Centaurus has made the decision to separate the Management Contract from the Engineering and Procurement (EP) Contract to achieve stronger project control over the Jambreiro development.
The company is currently working through proposals from a short-listed group of contractors for the EP Contract and is scheduled to award this contract by the end of February 2013.
Centaurus’ award of the Management Contract and EP Contract prior to a final investment decision will allow the company to maintain its development timetable, which is based on delivering first product by the end of 2013.
Jambreiro is expected to be a low cost, high margin project that will deliver 2 million tonnes per annum at 64.5% iron.
The project has a post-tax net present value of A$140 million and internal rate or return of 33%.
Life of mine revenue has been estimated at A$847 million, with operating costs estimated at A$16.20 per tonne.
Discussions to secure debt finance for the Jambreiro Project are progressing well with a final investment decision and commitment to the full capital budget to be delivered upon finalisation of the overall funding package.
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