Jambreiro Iron Ore Project
The Company’s 100%-owned Jambreiro Project, located in south-east Brazil, is an advanced development opportunity for up to 3Mtpa of production. It represents a strategic asset in the Brazilian domestic iron ore and steel sector, particularly with the premium pricing that exists in the market for high grade ore (+65% Fe).
Centaurus completed a positive Pre-Feasibility Study (PFS) on the Jambreiro Project in July 2019, which outlined a robust 1Mtpa start-up project capable of generating life-of-mine revenues of A$1.05 billion and EBITDA of A$533 million over its initial 18-year life. The Study was updated in May 2020 and the Study outcomes were presented in the June 2020 Quarterly Report, released to the market on 29 July 2020.
Since completion of the PFS, iron ore prices and exchange rates have significantly strengthened, further enhancing the potential economics of the proposed Jambreiro Project development.
In 2024, in response to growing interest from potential off-take partners and customers, Centaurus commenced a new study on the potential of the Jambreiro Project to deliver a Direct Reduction (DR) quality pellet feed concentrate.
The strong push by steel-makers to lower greenhouse emissions has resulted in iron ore producers being encouraged to maximise grade and minimise impurities.
With this in mind, Centaurus is now investigating the possibility of producing a DR quality pellet feed product from the Jambreiro ore, targeting a +68% Fe product with combined grades of Silica and Alumina being under 2%.
DR pellet feed product is used to produce DR pellets, which in turn are then used as feed for Electric Arc furnaces. DR pellet feed material has a lower overall carbon footprint compared to ore that can only be fed into Blast Furnace (BF) steel mills. With steel producers increasingly focusing on strategies to reduce their carbon footprint, the production of DR quality iron ore greatly assists in achieving this objective.
Bench scale metallurgical testwork has confirmed the potential for the Jambreiro Project to produce a Direct Reduction Pellet Feed (DRPF) product across its entire projected mine life.
In light of the highly encouraging results received from the testwork, Centaurus is now assessing the impact of the changes to the proposed process flowsheet from a capital and operating cost perspective and engaging further with potential off-takers.
In December 2024, the Jambreiro Project was awarded priority status by the State of Minas Gerais due to its potential positive social and economic impact to the State.
This priority status means the remaining licence renewal steps should be fast-tracked through the State regulators, supporting Centaurus’ plans to re-evaluate the development of the deposit to meet growing demand for high-grade, low-impurity direct reduction pellet feed iron ore.
Read the full Jambreiro Pre-Feasibility Study announcement (July 2019)
Read about the positive metallurgical results for the production of DRPF Announcement (10 April 2024)
View the Jambreiro Ore Reserve and Mineral Resource Estimate (MRE) Statements
