Meridian Mining plc has moved its Cabaçal gold, copper and silver development in Brazil into the pre-construction phase, following a series of engineering appointments, infrastructure commitments and substantial interest from potential project financiers.
In an announcement published on 9 November 2026, the company confirmed that it had appointed international engineering group AFRY as the project’s Engineering, Procurement and Construction Management (EPCM) contractor. It also disclosed that it had received several fully funded indicative financing proposals totalling approximately US$400 million.
The development represents an important transition for the Cabaçal project, moving beyond feasibility studies towards the practical requirements of mine construction and eventual commercial production.
US$30.9 million committed to pre-construction activities
Meridian has committed approximately US$30.9 million in contracts covering essential pre-construction activities.
These commitments include:
- Engineering and construction management services.
- Power transformers.
- Road upgrades and bridge infrastructure.
- A semi-autogenous grinding (SAG) mill.
- Jameson flotation cells.
- An IsaMill processing system.
The appointment of AFRY brings additional engineering and project management capacity to the development.
AFRY has operated in Brazil since 1969 and employs approximately 1,450 professionals in the country. Its international organisation comprises approximately 18,000 professionals.
Meridian intends to maximise Brazilian participation in the project’s construction, with its development team working alongside AFRY’s operations in Belo Horizonte.
Power and transport infrastructure advance
The mining development also requires dedicated electricity and improved transport infrastructure.
Meridian has secured the relevant installation licence for structures associated with a planned 24.3-kilometre, 138-kilovolt power line connecting the Cabaçal site to the Araputanga substation.
Access agreements for the power line route have also been established.
The company has awarded engineering contracts for upgrading heavy-vehicle road access, including supporting infrastructure such as bridges.
A separate competitive procurement process is underway to appoint the contractor responsible for constructing the power line, upgrading the connection substation and establishing the receiving substation at the mine.
These infrastructure developments are important because mining production depends not only on mineral resources but also on reliable electricity, processing capacity and the ability to transport materials.
US$400 million financing proposals attract institutional interest
One of the most significant developments is the financing interest generated by the project.
Meridian disclosed that it had received more than 20 indicative proposals following engagement with banks, debt providers, investment funds, commodity traders and export credit agencies.
Several proposals include debt financing exceeding US$300 million, while multiple parties have submitted fully funded indicative packages totalling US$400 million.
These packages are structured to cover project debt, potential cost overruns, any required equity contribution and associated offtake and marketing services.
The proposals remain indicative and are subject to further assessment and negotiations. Meridian has not yet announced its preferred financing partners or a final investment decision.
Nevertheless, the number and scale of proposals demonstrate the level of institutional interest in the development.
The company’s definitive feasibility study provides an important part of that investment proposition.
It estimates an after-tax net present value of approximately US$2.1 billion at a 5% discount rate and an internal rate of return of 108%, based on the study’s underlying assumptions.
The estimated pre-production capital requirement is US$322 million.
These are feasibility-study projections rather than realised financial returns, but they provide the commercial foundation against which prospective financiers are evaluating the project.
Local skills development and employment requirements
The development is also progressing towards building the workforce required for construction and operations.
Meridian is working with the Federation of Industries of the State of Mato Grosso (FIEMT) and Brazil’s SENAI technical training network to establish training capacity in São José dos Quatro Marcos.
The initiative is intended to prepare workers from surrounding communities for employment opportunities associated with the mining development.
According to the company’s projections, peak construction could require more than 1,300 workers, while operational activities are expected to require more than 600 employees.
This creates an opportunity to connect industrial investment with technical skills development, local employment and the expansion of supporting businesses.
What Cabaçal signals for Brazil’s mining industry
The Cabaçal development illustrates the importance of moving mining projects from resource evaluation into practical industrial execution.
Copper remains an important industrial commodity because of its applications in electricity networks, renewable energy infrastructure, electric vehicles and broader electrification.
Gold and silver provide additional revenue streams through the project’s planned mineral production.
For Brazil, developments of this nature can strengthen domestic mining capabilities, create demand for engineering and construction services, expand technical employment and contribute to mineral exports.
The project’s progress also demonstrates how international engineering expertise, local industrial participation and institutional financing can converge around a single mining development.
However, the next major milestone remains the final investment decision, followed by the commencement of full construction.
Meridian’s announcement places Cabaçal closer to that transition, with engineering arrangements, infrastructure preparation and financing discussions advancing simultaneously.
The significance of Cabaçal is no longer limited to the mineral deposits beneath the ground. Its development is increasingly defined by the engineering capacity, infrastructure investment and financing required to turn those resources into commercial production.
