Horizonte Minerals Plc, (AIM: HZM, TSX: HZM)
(‘Horizonte’ or ‘the Company’), the nickel development company
focused in Brazil, is pleased to announce that it has been awarded
the construction licence for the development of its 100% owned
Araguaia Ferronickel Project (“Araguaia” or “the Project”) in
Brazil. The award of the Construction Licence, Licença de
Instalação (“LI”) in Portuguese, was granted by SEMAS, the
Brazilian Pará State Environmental Agency (‘SEMAS’).
Highlights:
- The granting of the LI provides Horizonte with the permits
required to construct the Araguaia rotary kiln electric furnace
(“RKEF”) processing plant and associated infrastructure;
- The LI approval represents a major de-risking step for
Araguaia, which is now fully permitted to commence
construction;
- Receipt of the permit follows release of the Feasibility Study
(“FS”) results in October 2018 and filing of the 43-101 FS report
on SEDAR in December 2018.
Jeremy Martin, Chief Executive of
Horizonte, commented:“I am very pleased to announce the
award of the Construction Licence (LI) for Araguaia as this is a
major milestone for the Company. Subject to funding, the company is
now in a position to commence construction with the necessary
environmental permits approved, including water abstraction permits
issued in 2018 together with the newly issued LI. The LI allows
development to commence on the RKEF process plant and associated
infrastructure.
The award of the LI has been delivered on time
and on budget with the Horizonte team working closely with SEMAS,
other State agencies and the local communities. Consistent with our
objective to provide long-term sustainable value for our
shareholders, employees and communities, we developed integrated
solutions focused on environmental protection, water efficiency and
socio-economic development. The LI award follows on closely from
the completion of the FS, demonstrating that Araguaia is a Tier 1
asset with the potential to be a low-cost supplier of nickel in the
form of high-grade ferronickel to the stainless-steel industry.
Over the initial 28-year mine life, Araguaia is expected to
generate cash flows after taxation of US$1.6 billion and sits on
the lower half of the global cost curve.
The LI and FS results combined with the positive
fundamentals around the nickel market positions Horizonte well for
2019, with the construction-ready Araguaia project to supply the
ferronickel market and our second project, the Vermelho nickel
cobalt project, being advanced to supply the Electric Vehicle
battery market. We look forward to updating the market over the
coming months, at what is an exciting time for the Company.”
Detailed Information
After receiving the Preliminary Environmental
Licence (“LP”) in 2016, concluding the FS in October 2018 and
filing of the FS on SEDAR in December 2018, the receipt of the LI
allows the Company to undertake construction activities for the
Araguaia project.
The Company worked with Environmental Resource
Management (‘ERM’), a global leader in this field, together with
local Brazilian groups: Integratio Mediação Social e
Sustentabilidade (social and land) and DBO Environmental
Engineering (fauna) for the FS environmental and social work
streams and the project permitting work for the LI. All work has
been undertaken to the International Finance Corporation (IFC)
Performance Standards, 1, 2 and 5 and Brazilian CONAMA
environmental legislation.
The groups, together with the Company, conducted
a number of phases of work in 2017 and 2018 including:
• Environmental Control Plans - elaboration and
detailing of socio-environmental programs;
• Inventories of fauna and flora;
• Air dispersion modelling;
• Hydrogeological modelling and water
balance;
• Visits by physical, biological and social
analysts to site; and,
• Air, noise and water monitoring – ongoing as
part of base line data build up into the construction and
operational phase.
Araguaia will generate approximately 500 direct
and indirect jobs in the south-eastern rural area of Pará State,
over the 28 years of operations. The majority of these workers
during the operational phase will reside locally. The peak
construction workforce is expected to reach over 1,000.
Community contributions are expected to total
over US$700 million during the life-of-mine, including:
• Over US$400 million in company taxes; and,
• Over US$280 million in employee and contractor
wages.
About Araguaia
The wholly owned Araguaia Project is located in
the south-east of the Brazilian state of Pará, approximately 760 km
south of the state capital Belém.
The Project comprises an open pit nickel
laterite mining operation that mines 27.5 million tonnes (‘Mt’)
Mineral Reserve of a 119 Mt Mineral Resource to produce 52,000
tonnes of ferronickel (‘FeNi’) (containing 14,500 tonnes of nickel)
per year, for the 28-year mine life. The metallurgical process
comprises a single line RKEF to extract FeNi from the laterite ore.
The RKEF plant and project infrastructure will be constructed over
a 31-month period. After an initial ramp-up period, the plant is
expected to reach full capacity of approximately 900,000 tonnes of
dry ore feed per year.
The FeNi product will be transported by road to
the port of Vila do Conde for sale to overseas customers.
Based on the FS results published in October
2018, the economic analysis indicates a post-tax NPV of US$401
million and an IRR of 20.1% using the base case forecast of
US$14,000/t Ni. This increases to US$1,906 million and 50.4% when
using the long-term price forecast by Wood Mackenzie of US$26,450/t
Ni.
Detailed Information
For further information visit www.horizonteminerals.com or
contact:
Horizonte Minerals plc |
|
Jeremy Martin (CEO) |
+44 (0) 203 356 2901 |
|
|
Numis Securities Ltd (NOMAD & Joint
Broker) |
|
John
Prior Paul Gillam |
+44 (0) 207 260 1000 |
|
|
Shard Capital (Joint Broker) |
|
Damon
Heath Erik Woolgar |
+44 (0) 20 186 9952 |
|
|
Tavistock (Financial PR) |
|
Emily
FentonGareth Tredway |
+44 (0) 207 920 3150 |
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed
nickel development company focused in Brazil. The Company is
developing the Araguaia project, as the next major ferronickel mine
in Brazil, and the Vermelho nickel-cobalt project, with the aim of
being able to supply nickel and cobalt to the EV battery
market. Both projects are 100% owned.
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