The Brazilian Mines and Energy Ministry has awarded dual-listed Horizonte an energy decree, which guarantees the company access to the national grid for the commercial operation of its Araguaia ferronickel project.
The receipt of the energy decree follows a number of key permitting milestones for the Araguaia project, including the award of the water permit for full-scale operation in April last year, and the construction licence earlier this year.
“The availability of energy for mining projects is a risk in many countries, and this decree guarantees the company has access to the grid for the full-scale Stage 1 commercial operation with nameplate capacity of 14 500 t of nickel per year,” Horizonte CEO Jeremy Martin said on Monday.
He also reported that Horizonte continued to advance the project financing on Araguaia and that a number of international banks had shown a positive interest.
Discussions were also under way with a number of groups on product marketing and offtake.
"The nickel market fundamentals continue to move in the right direction with nickel inventories on the London Metal Exchange down to around 160 000 t today and with continued growth drivers on the demand side from stainless steel and the electric vehicle battery market,” Martin said.
The Araguaia project comprises an openpit nickel laterite mining operation that mines a 27.5-million-tonne mineral reserve of 119-milllion tonnes to produce 52 000 t/y of ferronickel, containing 14 500 t of nickel.
The company aims to start production in late 2021 or early 2022.