London-listed Meridian Mining appointed Sweden’s AFRY on 9 November to provide engineering, procurement and construction management services for its Cabaçal copper-gold-silver project in Brazil. The work moves the project into detailed engineering and early procurement, advancing it toward a final investment decision that Meridian has not yet made.
Engineering and infrastructure
Meridian said it had committed approximately 27.7 million euros to pre-construction contracts covering engineering, processing equipment, power infrastructure and civil works. Orders include a semi-autogenous grinding mill, Jameson flotation cells and an IsaMill. The contract values do not necessarily mean that the amounts have been paid or that equipment has been delivered to site.
The company has secured an installation licence and necessary access rights for a proposed 24.3-kilometre, 138-kilovolt power connection. Selection of the contractor to build the line was still in progress.
Financing remains indicative
Meridian reported receiving more than 20 indicative financing proposals, with several packages carrying a stated value of about 358 million euros. The packages combine debt, equity, cost-overrun provisions and possible concentrate-marketing arrangements, but remain indicative rather than executed loan, equity or offtake agreements.
Meridian has not selected a final financing consortium or signed definitive funding documents, and it did not announce a final investment decision. Its reported treasury of approximately 80.6 million euros provides development liquidity, but is not a dedicated construction loan or financing package.
Project economics and next steps
Cabaçal’s definitive feasibility study estimates pre-production capital spending of about 288 million euros. It reports a net present value of approximately 1.88 billion euros under specified commodity-price assumptions; that figure is a forecast valuation, not a guaranteed return.
AFRY is a Swedish engineering company with operations in Brazil, linking the project with European industrial expertise. Meridian has reported commercial interest from concentrate traders and smelters, but its latest announcement did not confirm a new binding concentrate offtake contract. Cabaçal also illustrates the role of overseas mine development in European engineering and metals supply chains, while early procurement progress remains distinct from enforceable construction financing.
The next milestones are selecting lenders, signing financing documents and making an investment decision. Until financing and that decision are secured, the project remains exposed to financing, execution and commodity-market risks.
