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 envisages an openpit nickel laterite mining operation that delivers ore from several pits to a central rotary kiln electric furnace (RKEF) metallurgical processing facility.

The deposits will be mined by contractors using conventional openpit truck-and-shovel techniques. No blasting will be necessary. Reverse circulation grade-control drilling will be completed at a 10 m × 10 m spacing, well ahead of mining. This, combined with 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.

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/y of ferronickel containing 14 500 t/y of nickel.

The project has an initial 28-year mine life.

Araguaia’s feasibility study design allows for the future construction of a second RKEF process line, with potential to double Araguaia’s production capacity from 14 500 t/y to 29 000 t/y of nickel.

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-million and internal rate of return of 20.1%.

Capital Expenditure
The project has a capital cost of $443-million, including $65.3-million in contingencies.

Planned Start/End Date
The RKEF plant and project infrastructure will be built over a 31-month period.

The company aims to start production in early 2021.

Latest Developments
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 Araguaia.

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 will cover a significant portion of the preproduction capital required to complete the Stage 1 construction for Araguaia.

The financing package is targeted for completion by the end of 2020, provided that restrictions pertaining to the Covid-19 pandemic do not cause further delays.

Key Contracts and Suppliers
Ausenco Engineering Canada (process plant design).

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.