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Araguaia nickel project, Brazil

30th June 2017

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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
Horizonte Minerals has awarded contracts for key parts of the feasibility study at its Araguaia nickel project.

The miner has appointed Steinweg Handelsveem for material transport and logistics, SM&A Electrics for power infrastructure and power transmission lines and VCE Mine Consultancy for mining permit reporting.

The feasibility study is currently at an advanced stage, with the principal work streams more than 50% complete. 

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.
 
 

Edited by Creamer Media Reporter

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