Horizonte Minerals Plc (LON:HZM)(TSE:HZM) has been awarded a construction licence for the development of the Araguaia ferronickel project in Pará State, Brazil.
The licence was granted by SEMAS, the Brazilian Pará State Environmental Agency.
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Horizonte now has the permits required to construct the Araguaia rotary kiln electric furnace, processing plant and associated infrastructure.
It means Araguaia is now fully permitted to commence construction.
"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,” said chief executive Jeremy Martin.
Over the initial 28-year mine life, Araguaia is expected to generate cash flows after taxation of US$1.6bn and sits on the lower half of the global cost curve.