Jambreiro Pilot Plant Success Raises Questions on Capital Costs and Licensing

Pilot Plant Success at Jambreiro

Centaurus Metals Limited (ASX, CTM) has reported encouraging results from its pilot plant testwork on ore from the Jambreiro Iron Ore Project in Brazil. The company produced over half a tonne of high-purity direct reduction pellet feed (DRPF) concentrate, boasting an average iron content of 67.8% and combined silica and alumina impurities of just 1.93%. These specifications meet stringent industry standards for direct reduction steelmaking, a process increasingly favoured for its lower carbon emissions compared to traditional blast furnace methods.

Refining the Process and Product Quality

The pilot program, conducted by the independent Fundação Gorceix laboratory, not only confirmed the ability to produce a consistent, high-grade product but also allowed Centaurus to fine-tune its process flowsheet. Notably, the company replaced a low-intensity magnetic separator with a medium-intensity wet drum rare earth separator, improving both mass recovery to 40.3% and metallurgical recovery to 89.3%. These adjustments suggest potential capital cost savings in the project's development phase.

Environmental and Operational Advances

Beyond concentrate quality, the pilot tests included filtration and free-draining assessments of the tails stream, which showed promising results for waste management. The ability to blend slimes with rougher spiral tails and co-deposit them with mine waste could reduce the need for more expensive dry stacking methods, positively impacting operational costs and environmental footprint. Centaurus is concurrently advancing the re-licensing process with the Minas Gerais environmental agency, a critical step toward project approval.

Strategic Implications and Market Positioning

With steelmakers increasingly demanding low-carbon inputs, the Jambreiro project’s DR pellet feed positions Centaurus well to meet evolving market needs. The low phosphorus content (0.02%) and high iron grade enhance the product’s attractiveness to off-takers focused on reducing scope-3 emissions. The company is now leveraging these pilot results to strengthen off-take discussions, a vital milestone for securing project financing and advancing toward production.

Looking Ahead

While the pilot plant results are promising, full-scale production performance and final environmental approvals remain to be secured. Nonetheless, this development marks a significant step in validating Jambreiro’s potential as a supplier of premium, low-carbon steelmaking feedstock.