Horizonte Minerals Plc, the nickel development company focused in Brazil, is pleased to announce that, further to the announcement on 6 March 2017, it has awarded further contracts for key parts of the Feasibility Study ('FS'), for its 100%-owned Araguaia nickel project.
The contracts awarded are as follows:
- Steinweg Handelsveem (Latin America) S.A - Material transport and logistics
- SM&A Electrics - Power infrastructure and power transmission line
- VCE Mine Consultancy - Mining Permit reporting
The Feasibility Study is at an advanced state with a number of the principal work streams over 50% complete. The Company's strategy is to position itself as one of the lowest cost nickel producers globally. The Araguaia Project is designed to produce 14,500 tonnes per annum ('tpa') of nickel using the proven rotary kiln electric furnace technology ('RKEF').
Horizonte has awarded contracts to the following groups to deliver the relevant infrastructure work and permitting for the Araguaia Feasibility Study:
Material Transport and Logistics - Steinweg Handelsveem (Latin America) S.A
Steinweg is a well-established company in Container and Break-Bulk Operations, in the non-ferrous world, soft commodities, general cargo, etc. with offices and operations in more than 70 locations worldwide. Founded in Rotterdam, the Netherlands in 1847 Steinweg has grown to a global network of offices and has a presence in Brazil since the 1980's. It is active in providing word wide logistics solutions including, forwarding, chartering, port operations, warehousing, processing, general and bulk cargo amongst other logistics relate services. Steinweg has extensive experience in the region around the Araguaia Project currently operating the logistics for a number of operating mines in the Carajas mining district.
Power infrastructure and power transmission line - SM&A Electrics
SM&A has developed a strong track record delivering complete electrical engineering solutions in Brazil since foundation in 2000. It has an experienced management team and an open range of electrical engineering activities, acting in various segments of industrial activities, such as steel, mining, cement, projects for infrastructure works, and power systems up to 345kV. The company undertakes work in the following areas: Conceptual projects, Basic and Detailed projects, operational commissioning and full operations.
Mineral concession legal report for Mine operation permitting - VCE Mine Consultancy
VCE is a consultancy based in Brazil, specialising in mine engineering and permitting. The company performs strategic planning, process optimisation and technical legal reports for mine operation permitting. VCE has worked for a number of flagship mining projects in the same region of Brazil as the Araguaia Nickel project which makes it well placed to undertake the current work.
The Araguaia Nickel Project
Araguaia, which is 100% owned by Horizonte, is located on the eastern margin of the State of Pará, north-eastern Brazil, to the north of the town of Conceição do Araguaia (population of 46,206), south of the main Carajás Mining District.
The Project has good regional infrastructure including a network of Federal highways and roads, with access to low tariff hydro-electric power. The Carajás Mining District, situated approximately 200km northwest of Araguaia, is host to a number of major iron and copper mines operated by mining major Vale SA.
The Pre-Feasibility Study ('PFS') released in October 2016 considers open pit mining for the exploitation of nickel laterite to establish the production of run of mine ('ROM') from eight open pits to supply a targeted 0.9 million tpa ('Mt/a') of ore to a processing and smelter facility. This facility will use the proven RKEF process with the product being sold at free on board ('FOB') at the selected port of export.
A Base Case of 0.9 Mt/a production throughput was selected because of the Company's objective to minimise the capital expenditure and overall capital intensity, and to optimise overall cash flow, payback, and the economics of the Project.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.