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    Meridian’s $400m Cabaçal mine decision: project finance and design notes for engineers

    November 10, 2026|

    Reviewed by Tom Sullivan

    Meridian’s $400m Cabaçal mine decision: project finance and design notes for engineers

    First reported on MINING.com

    30 Second Briefing

    Meridian Mining has entered pre-construction at its Cabaçal copper-gold-silver project in Mato Grosso, shortlisting more than twenty financing proposals, several up to $400 million covering project debt, cost overrun facilities, equity and off-take. It has already committed $30.9 million to EPCM with AFRY, a SAG mill, Jameson Cells, an IsaMill, power transformers and transport works, and secured an installation licence plus public utility status for a 138 kV power line to the Araputanga substation. Cabaçal’s feasibility study reports an after-tax NPV of $2.09 billion and 56.04 Mt of reserves at 0.35% Cu, 0.61 g/t Au and 1.33 g/t Ag.

    Technical Brief

    • Financing proposals from lenders, banks and commodity traders mostly cluster above the US$300 million level.
    • Higher-end US$400 million offers explicitly bundle project debt, cost overrun facilities, equity and off-take.
    • Meridian’s treasury of US$90 million provides equity cushion ahead of final investment decision and drawdown.
    • Power corridor works include upgrading Araputanga connection substation plus constructing a 138 kV line and site substation.
    • EPC contractor selection for the power line remains pending, separating grid connection delivery from plant EPCM scope.
    • Workforce plan targets ~1,300 local hires for construction and ~600 for operations via Mato Grosso/SENAI partnerships.
    • Commodity price assumptions in the 2026 feasibility use US$3,570/oz Au, US$5.03/lb Cu and US$50.17/oz Ag.
    • Market valuation of C$862.9 million (at C$1.76/share) benchmarks equity market support for project-level gearing.

    Our Take

    AFRY’s parallel expansion into full life-cycle mining consultancy, highlighted in its acquisition of AMC, suggests Meridian’s choice of AFRY for Cabaçal pre-construction could streamline later-stage optimisation and debottlenecking rather than just front-end engineering.

    The two-year tin offtake from Alphamin’s Bisie mine into a new US smelter indicates Meridian Mining is positioning itself within a broader critical minerals supply chain that links Brazilian copper-gold and Congolese tin into North American processing capacity, which may appeal to financiers focused on diversified exposure beyond a single commodity.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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