Photo by: Horizonte Minerals
Name of the Project
Araguaia ferronickel project.
Location
Pará state, Brazil.
Project Owner/s
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 feasibility study comprises an openpit nickel laterite mining operation that delivers ore from several pits to a central rotary kiln electric furnace (RKEF) metallurgical processing facility.
The metallurgical process comprises a single line (Line 1) RKEF to extract ferronickel from the ore. After an initial ramp-up period, the plant will reach full capacity of about 900 000 t/y of dry ore feed to produce 52 000 t of ferronickel, which in turn, will contain 14 500 t/y of nickel over a 28-year life-of-mine. The ferronickel product will be transported by road to the Port of Vila do Conde, in the north of the state, for sale to overseas customers.
Included in the study is the option for future construction of a second process line (Line 2), which would double Araguaia’s production capacity from 14 500 t/y of nickel up to 29 000 t/y of nickel.
The Stage 2 expansion gives a 26-year mine life.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The Stage 2 expansion generates an estimated net present value of $741-million and an internal rate of return of 23.8%.
Capital Expenditure
The project has an initial capital cost of $443-million.
Planned Start/End Date
The project remains on track to deliver its first nickel in the first quarter of 2024.
Latest Developments
Horizonte Minerals has received a mining approval permit for Araguaia, paving the way for mining activities to start.
“The approval allows [for] ore to be mined and stockpiled, with the aim of mitigating a key commissioning risk as part of our mine-to-mill strategy ahead of the plant startup next year,” CEO Jeremy Martin has said.
Over the next six months, stockpiles will be established, with sufficient ore to feed the plant for the subsequent six months, Horizonte reports.
The Pequizeiro pit, located 750 m from the plant site, will be the primary source of ore to Araguaia, supplying the first two years of the project's mine life and contributing more than 50% of the mine production for the first ten years.
Key Contracts, Suppliers and Consultants
Ausenco Engineering Canada (process plant design); FLSmidth, Metso Outotec, Uvån Hagfors Teknologi Inteco Melting and Casting Technologies (equipment supply and technical support); and Hatch (furnace contract).
Contact Details for Project Information
Horizonte Minerals, tel +44 203 356 2901.
Tavistock, on behalf of Horizonte Minerals, tel +44 207 920 3150 or email horizonte@tavistock.co.uk.