Horizonte Minerals PLC (LON:HZM) told investors it has been awarded a construction licence package for the development of the power line for the Araguaia ferronickel project in Brazil.
The licences – related to construction, fauna and flora respectively – were issued by the Brazilian authorities and they allow the implementation of a 120-kilometre power and substation to serve Araguaia, connecting the mine to the national power grid.
“Araguaia is already fully permitted to start construction,” said Jeremy Martin, chief executive.
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“The award of the power licence package is a critical step in our path to production, and further de-risks the project by securing the full power requirement for commercial operation.
“The power supply will be hydroelectric which is a key factor in the ability to produce a low CO2 per tonne of product, in line with other Brazilian ferronickel producers, placing Araguaia in the lowest half of carbon emitters globally for nickel production.
“We look forward to updating the market on progress at Araguaia over the coming months."