Name of the Project
Araguaia nickel project.

Location
The project is located on the eastern margin of the state of Pará, in north-eastern Brazil, to the north of the town of Conceição do Araguaia.

Client
Horizonte Minerals.

Project Description
Araguaia has proven and probable reserves of 24.6-million tonnes grading 1.77% nickel and comprises the Araguaia nickel project area (HZMA) and the Glencore Araguaia project (GAP) area.

The project is based on a 28-year life-of-mine, producing about 14 500 t/y of nickel in ferronickel from a single-line rotary kiln electric furnace (RKEF) plant.

The prefeasibility study (PFS) has proposed openpit mining for the exploitation of nickel laterite to establish the production of run-of-mine from eight openpits (seven for the HZMA and one for the GAP) to supply a targeted 900 000 t/y of ore to a processing and smelter facility. This facility will use the proven RKEF process, with the product being sold free-on-board at the selected port of export. 

Overall nickel recovery has been estimated at 93%.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value (NPV), at an 8% discount rate, of $581-million at a nickel price of $14 000/t and an NPV of $328-million at a nickel price of $12 000/t of nickel. 

A post-tax internal rate of return of 26.4% at $14 000/t of nickel and 19.3% at $12 000/t nickel has been estimated. 

Value
Total preproduction capital costs are estimated at $353.5-million.

Duration
Production is expected to start in 2017.

Latest Developments
The ongoing feasibility study for the Araguaia project is progressing on schedule and is more than 60% complete.

According to Horizonte CEO Jeremy Martin, the feasibility study is due for completion by the end of the year, with targeted publishing in early 2018.

In terms of process design and engineering, Brazil-focused nickel developer Horizonte has noted that major equipment packages have been issued to the market, enabling the company to compile capital cost estimates.

The national grid to the plant substation has been finalized, with site layout work and a three-dimensional model of the site substantially complete.

Further, Horizonte has concluded the organisational structure of the future nickel operation.

The mine planning and design of Araguaia is also at an advanced stage of completion, with geotechnical sampling and testwork completed to support engineering design in the process plant areas and appropriate pit design.

In terms of its social and environmental obligations, Horizonte has finalised environmental control plans for the installation licence, and can submit all documentation to the State Environmental Agency in the current quarter.

The next major milestone and derisking step for the project will be the award of the installation licence, which is expected to be awarded in the first quarter of 2018 and allows construction to start.

Further, the company’s sustainability team is progressing towards the water pipeline and energy transmission line installation licences.

Key Contracts and Suppliers
Worley Parsons Group (process engineering); Snowden Mining Industry Consultants (mine planning, mineral resource and the reserve estimate and ERM (hydrogeology and the environmental and social permitting); Steinweg Handelsveem (material transport and logistics), SM&A Electrics (power infrastructure and transmission lines); and VCE Mine Consultancy (mining permit reporting).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Horizonte Minerals, tel + 44 207 763 7157 or email info@horizonteminerals.com.