Harvest Minerals Ltd (LON:HMI) has been given the environmental green-light for its proposed mining operation at the Arapuá phosphate fertiliser project in Brazil.
In a stock market statement the company told investors that its Brazilian subsidiary has been granted the State Autorização Ambiental de Funcionamento (AAF) environmental licence for the project.
The AAF is a precursor to applying for a trial mining permit, Harvest explained. And subsequently, that application has now been lodged with the National Department of Mineral Production (DNPM).
Under the AAF, which lasts four years, the company has environmental approval for a ‘rolling’ 50,000 tonnes of production from the Maximus deposit at Arapua, which in other words means the company can produce batches of up to 50,000 tonnes of material at a time.
It is notable that such volumes could exceed Harvest’s original plan to produce up to a total of 100,000 tonnes per year during the trial mining phase.
Having secured the AAF the company now has permission to begin site works in preparation for a mining and production operation.
Harvest told investors it is now finalising arrangements with contractors, and it expects to confirm the appointment and mobilisation plans in the coming week.
Brian McMaster, Harvest Minerals chairman, said: “The team at Harvest is focused on bringing the Maximus target into trial production by the end of the year, and the award of the environmental license brings us another step closer to that goal.
“With the available funds from the last placement in January, we have progressed the project to the point when we are now able to commence site works, which is a credit to all involved.”
Harvest also noted that it has received US$400,000 of new capital as a result of share warrants being exercised.
“We welcome current shareholders exercising their warrants which is a vote of confidence for our growth strategy," McMaster added.