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 base case estimates a post-tax net present value, at an 8% discount rate, of $401-million and internal rate of return of 20.1%.

Capital Expenditure
$537-million.

Planned Start/End Date
The project remains on track to deliver its first nickel in the first quarter of 2024.

Latest Developments
Horizonte has increased the capital expenditure (capex) guidance for its Araguaia nickel project to $537-million – a 12.6% increase on the previous estimate. The higher capex cost is the result of inflationary pressures, combined with engineering improvements to derisk the operation.

“. . . through our rigorous focus on cost discipline we expect to . . . limit the increase to 12.6%, which is broadly in line with the peak of the Brazilian inflation cycle earlier this year, and we are now taking proactive steps to ensure that we have adequate access to capital . . .” CEO Jeremy Martin said at the time.

Overall project progress is at about 16% as of September 30, and site construction activities are progressing in accordance with the company’s planned construction schedule.

The Brazilian government approved the Araguaia project as a strategic minerals project in September 2022.

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.