Centaurus delays Jambreiro start-up

Brazil-focused iron ore miner Centaurus Metals has pushed back the commissioning date for its Jambreiro project to mid-2014, instead of by the end of this year, because of changes in the nature of negotiations for an off-take deal for the development.

Centaurus said today that the negotiations had evolved to include a potential life-of-mine off-take agreement for iron concentrates produced from the Jambreiro mine, a development which Brazilian steel mills would require additional time to consider.

The miner said it remained in contact with its potential financiers to establish a debt financing package, subject to an off-take agreement being in place.

The new project schedule will allow Centaurus to complete full engineering of the Jambreiro processing plant's three-stage spirals circuit and fully integrate it into the plant design, as well as complete a tendering process for additional equipment.

Centaurus will release a definitive cost estimate for Jambreiro in July.

Managing director Darren Gordon said the prospect of signing a life-of-mine sales contract was an exciting development.

"The extra time in the schedule will also now be used proactively to enhance the detailed plant design and execution planning, which will ultimately deliver strong benefits to shareholders," Mr Gordon said in a statement.

"We remain in regular contact with our preferred international project financiers on the progress of these off-take negotiations, and this should allow us to move quickly though the financing process once the off-take arrangements are squared away."

At 11:00am, WST, Centaurus shares were down 3.2 per cent, trading at 15 cents.