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, Baião, 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 envisions 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
Horizonte Minerals reported in October 2023 that it discussed a financing solution with major shareholders and lenders to solve the current funding gap.

The project is facing a cost increase of at least 35%, from the current capital expenditure budget of $537-million.

Engineering project management company Reta Engenharia is expected to complete its capital cost and schedule analysis report by the middle of the fourth quarter of this year, following which an independent technical adviser, nominated by senior lenders will review the updated costs.

Planned Start/End Date
First production has been delayed from the first quarter of 2024 to the third quarter of 2024.

Latest Developments
Construction progress continues at Araguaia.

Rotary kiln sections have been installed on the support piers and the furnace shell is complete. Roof installation, and commissioning of the 126 km (230kV) power transmission line, are under way.

All critical equipment packages have been contracted and are either on or being transported to site.

As of September 2023, 138 000 t of ore averaging 1.92% nickel have been stockpiled.

The Araguaia Line 2 feasibility study, which aims to double nickel production from 14 500 t/y to 29 000 t/y is expected to be published in the middle of the fourth quarter of 2023

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.