TIDMHZM
RNS Number : 9313M
Horizonte Minerals PLC
14 January 2019
14 January 2019
HORIZONTE MINERALS AWARDED CONSTRUCTION LICENCE FOR ARAGUAIA
FERRONICKEL PROJECT
_________________________________________________________________________
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 Fenton
Gareth 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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