Centaurus has a portfolio of highly prospective iron ore projects in this region including the flagship Jambreiro Project, which is expected to form the cornerstone of the Company’s Domestic Iron Ore Strategy. This Strategy is based on cost effectively beneficiating itabirite-hosted iron ore deposits to produce a high-quality, high-grade product for sale to the domestic steel industry.
The Company is aiming to ramp-up production to 2Mtpa of high-grade hematite by developing and operating a low Capex/ low Opex mine at the Jambreiro Project by the end of 2013, establishing itself as a long-term supply partner to the domestic Brazilian steel industry.
Centaurus’ Export Strategy, which predominantly encompasses the Serra do Lontra Project, is targeting an initial production rate of 1-2Mtpa of high-grade hematite. The cornerstone of this Strategy is the Serra do Lontra Project, which is located 140km by road from the Port of Ilheus in the State of Bahia.
The Company is aiming to truck ore to Ilheus for export, eliminating the need for costly infrastructure development.
Centaurus is one of the few ASX-listed resource companies offering investors significant exposure to the rapid growth of the Brazilian economy, which is undergoing a major boom in infrastructure investment ahead of the 2014 FIFA World Cup and the 2016 Olympics – including a recently announced US$830 billion infrastructure investment plan.
With a population of approximately 200 million, Brazil is becoming a key manufacturing centre for South American countries. The steel-making region of south-east Brazil is the engine room for this growth, providing Centaurus with a strong platform to build a substantial new international iron ore company.