https://www.miningweekly.com
Construction|Financial|PROJECT|Projects
Construction|Financial|PROJECT|Projects
construction|financial|project|projects

Horizonte tasks five banks to arrange $325m for Araguaia

Trial mining at Araguaia, Brazil.

Trial mining at Araguaia, Brazil.

12th August 2020

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Aim- and TSX-listed Horizonte Minerals has executed a mandate to arrange a senior project finance facility of up to $325-million to fund the construction and development of its Araguaia ferronickel project, in Brazil.

A syndicate of five international financial institutions, including BNP Paribas, ING Capital, Mizuho Bank, Natixis New York Branch and Société Générale will act as the mandated lead arrangers.

The debt facility would cover a significant portion of the preproduction capital required to complete the Stage 1 construction for Araguaia, CEO Jeremy Martin said on Wednesday.

The company requires $443-million for the initial phase of the project, which has an after-tax net present value of $401-million and an internal rate of return of 20.1% with cash costs equivalent to $3.08/lb of contained nickel.

“We are targeting completion of the project financing package for the project by the end of 2020, provided that restrictions related to the Covid-19 pandemic do not cause further delays. We aim to start construction in early 2021,” he affirmed.

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.

Araguaia will be the first of Horizonte’s projects to move to the construction phase, with the other being the Vermelho nickel/cobalt project, also in Brazil.

Shares in Horizonte rose 22% in London following the news.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.134 0.171s - 93pq - 2rq
Subscribe Now