$633 million! Horizonte begins construction of Araguaia nickel project in Brazil
- Horizonte expects Araguaia to be a large, scalable, low-cost large producer
UK-based Horizonte Minerals has started construction on its 100%-owned Araguaia nickel project in the northern Brazilian state of Pará. The initial capital cost of the nickel development project is $443 million.
Horizonte Minerals has arranged a $633 million capital package to develop the project by the end of 2021, with the excess funds being used for general working capital purposes. According to the company, the construction time for its tier one projects is 24 months. The first phase of the project aims to produce 14,500 tonnes of nickel per year.
Jeremy Martin, CEO of Horizonte Minerals, said: “We are one step closer to realizing our vision of bringing this project into production and generating first revenue. This all comes at a time when the nickel market is facing a tight supply, and we will be the Globally significant producer. Team has made excellent progress on key aspects of engineering, procurement and field work. Facing inflationary pressures like all other global projects, but has been able to spend approximately 50% of contingency project direct capex to date In terms of budget, this is a very positive result."
Nickel Development has awarded most of the major long-term equipment contracts for the project. These include the award of the furnace contract, the earthworks contract and the engineering, procurement and construction management contract. The EPCM contract for the ferronickel project was awarded to Pöyry Tecnologia, a Brazilian subsidiary of AFRY in March 2022. Keywords: engineering construction, engineering news
In May 2022, Copa Construção was awarded an earthworks contract for the Araguaia nickel project. , Horizonte Minerals issued contracts with a total value of $204 million. The nickel development company said it was about to award additional contracts worth $66 million.Editor/XingWentao