Horizonte hits construction pause at flagship nickel project
Construction activities at Horizonte Minerals’ flagship Araguaia project have been scaled back, as the company continues to seek a financing solution for the nickel project.
Only critical work streams are advancing at this stage, CEO Jeremy Martin said on Tuesday.
The Araguaia project, in Brazil, has total liquidity resources of $169-million, comprising of $131-million undrawn on the senior debt facility and a cash position of $38-million. This should provide sufficient working capital to about mid-December.
The key shareholders and lender representatives who visited Araguaia this past week were preparing their respective due diligence as part of a funding plan, but that would only be completed in early 2024 and financing could be forthcoming late in the first quarter, the company noted.
“While work on the funding solution continues, we have elected to focus capital and human resources on the critical work packages. This work is planned to ensure that we are well-positioned to resume full construction activities post receipt of the funding to benefit stakeholders and our community alike,” said Martin.
The Araguaia project is facing a cost increase of at least 35% from the current capital expenditure budget of $537-million and a delay of first production to the third quarter of next year.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation