Brazil-focused nickel company Horizonte Minerals has received formal credit and board approval from two export credit agencies (ECAs) for $146.2-million of the senior secured project financing facility to part fund construction of its Araguaia ferronickel project.
The ECAs are Denmark’s AKF and Finland’s Finnvera and their guarantee for key equipment and service provider contracts form tranche A of the senior debt facility for the project.
Tranche B is expected to be provided by a syndicate of international financial institutions.
The senior debt facility is set to provide a significant portion of the funding required for construction of the project. Horizonte CEO Jeremy Martin said on Monday that the company expected to announce credit approval from the balance of senior lenders during the remainder of the third quarter.
“We are now reaching the culmination of this complex funding process which will see us secure the initial capex required to develop Araguaia, our 100%-owned, tier 1 ferronickel project. With construction scheduled to commence on completion of funding this is a very exciting time for Horizonte."
The feasibility study for the Araguaia project describes an initial production phase where about 900 000 t/y of ore is treated in a rotary kiln electric furnace (RKEF) to produce about 14 500 t/y of nickel contained in 52 000 t/y of ferronickel.
The study includes an option to double production to 29 000 t/y of contained nickel by the addition of a second RKEF in the third year of the project.