Horizonte Minerals Plc, (LON:HZM, TSX:HZM) has been granted a preliminary environmental licence for a nickel mine and beneficiation plant at Araguaia in Brazil.
The junior said the award underscored the viability of its project at Araguaia and the state government’s support for the development.
Environmental approval in Brazil takes three stages, Horizonte added.
This preliminary licence (LP) is the first stage to be followed by an installation licence, that allows building to start, and finally an operating licence once the mine/plant is ready.
“The granting of the LP is often regarded as the most important licence as it outlines the parameters of the project as agreed upon by all stakeholders and is the only environmental licensing process that requires COEMA approval,” said Horizonte.
COEMA is the Pará State Committee of Environment, which consists of state government ministers, non-governmental organisations and representatives from civil society groups.
Jeremy Martin, Horizonte’s chief executive, said the licence followed 24 months of work and was a big step towards Araguaia becoming Brazil's next major nickel mine.
"The project has the potential to provide approximately 1,100 jobs in the construction phase and around 500 jobs during the operational phase of the mine; as a result the Pará State Government considers Araguaia to be a key economic driver for the southern part of the state.”
Community support for the project was also strong, Martin said.