Araguaia ferronickel project, Brazil
Name of the Project
Araguaia ferronickel project.
Location
Pará state, Brazil.
Client
Horizonte Minerals.
Project Description
A feasibility study has confirmed Araguaia as a Tier 1 project, with a large high-grade scalable resource, long mine life and low-cost source of ferronickel for the stainless steel industry.
The project has two principal mining centres – Araguaia nickel south (ANS) and Araguaia nickel north (ANN). ANS hosts the Pequizeiro, Baiao, Pequizeiro West, Jacutinga, Vila Oito East, Vila Oito West and Vila Oito deposits, while ANN hosts the Vale do Sonhos deposit.
The deposits will be mined by conventional openpit truck-and-shovel techniques using contractors. No blasting will be necessary. Reverse circulation (RC) grade control drilling will be completed at a 10 m × 10 m spacing well ahead of mining. This, combined with the use of visual control of the limonite and transition boundary, face sampling, stockpile sampling and ore feed sampling, supports a comprehensive mine-to-mill strategy that is designed to maintain consistent feed to the process plant.
Waste will be stored in external dumps near the pits. Ore will be transported to stockpile hubs near each deposit. Sheeting (using ferricrete extracted from the overburden) will be required to support trafficability in and around the mine during the wet season. Depending on plant demand, ore will be hauled from hub stockpiles or directly from the pits to the run-of-mine (RoM) at the RKEF process facility. Stockpiles on the RoM will be sheeted and classified according to ore type and chemistry for blending.
Araguaia’s feasibility study design allows for future construction of a second rotary kiln electric furnace (RKEF) process line, with potential to double Araguaia’s production capacity from 14 500 t/y to 29 000 t/y nickel.
The project will have one RKEF processing line, from ore receipts to shotting of the ferronickel product.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an estimated post-tax net present value, at an 8% discount rate, of $401-mil-lion and internal rate of return of 20.1%.
Value
The project has a capital cost of $443-million, including $65.3-million in contingencies.
Duration
The RKEF plant and project infrastructure will be built over a 31-month period.
Latest Developments
Subject to Horizonte’s board of directors approving the project, the completion of project financing, approval of the construction licence and overall nickel market conditions, the company will continue to advance the project towards construction. The key development milestones will be spilt into two phases:
Phase 1, which will be undertaken over the next six to eight months, will include:
- the completion of any outstanding metallurgical testwork,
- the completion of basic engineering and progress to detailed design engineering,
- early works site preparation, and
- the start of negotiations with engineering, procurement and construction management (EPCM)or engineering, procurement and construction (EPC) providers.
Phase 2 will include:
- the completion of detailed design,
- the specification, vendor selection, and contracts for all mechanical packages, and
- the completion of EPCM or EPC activities scheduled to deliver the project based on a 31 month schedule.
Key Contracts and Suppliers
Ausenco Engineering Canada (process plant design).
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Horizone Minerals, tel +44 203 356 2901.
Tavistock on behalf of Horizone Minerals, tel +44 207 920 3150 or email horizonte@tavistock.co.uk.
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