Nickel woes worsen for Glencore-backed miner as budget jumps 87%
Glencore-backed Horizonte Minerals is warning that it needs a whole new financing package to restart a nickel project in northern Brazil after a review revealed the mine will cost 87% more than thought.
In the latest sign of the challenges facing mining projects around the world, the London-listed firm said it’s engaging with existing and potential new investors on a “full financing solution” as well as holding talks to restructure company debt facilities.
The Araguaia project in Brazil’s Amazon region will cost $1-billion, up from a previous $537-million budget, of which $479-million has already been spent, Horizonte said in a statement Monday. The cost review follows a decision last year to restrict the project to critical works. The start of production, which was slated for this year, is now penciled in for early 2026, with ramp-up lengthened to 18 from 12 months.
Nickel mines and projects are struggling after a flood of cheap exports from Indonesia sent prices of the metal used in stainless steel and batteries tumbling about 45% since the start of 2023. Budget blowouts and long delays appear to be getting worse in the mining industry generally amid heightened social and environmental scrutiny, more red tape, harder-to-reach deposits, inflation and pricier capital.
“Completion of construction activities at Araguaia will be subject to successful completion of a full financing solution in 2024,” said Horizonte, which is also backed by investment firms La Mancha and Orion. “There can be no certainty at this stage that the full financing solution will be achieved and further updates will be provided in due course.”
Meanwhile, Graham Crew will replace Maryse Bélanger as interim chief operating officer, the company said in the same statement.
Comments
Research Reports
Projects
Latest News
Showroom
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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
