Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) has awarded the contract to build the furnace at its Araguaia ferronickel project to Hatch Ltd.
Hatch has a strong track record in South America, Horizonte said, which includes both Anglo American's and Vale's nickel operations in Brazil and South 32's Cerro Matoso operation in Colombia.
The contract comprises a circular electric arc furnace rated at 60 megawatts, a calcine transfer system to feed the furnace with 835,000 tonnes per annum of calcine and additional services to ensure successful installation and commissioning.
Horizonte added it is also finalising contracts for Engineering, Procurement and Construction Management (EPC), all the other major process equipment, overland power line, earthworks and civil works.
Early works currently on site include geotechnical drilling, site access upgrades and temporary site facilities.
Main earthworks are on track to begin at the start of the dry season in early April, the AIM-listed group added.
Jeremy Martin, Horizonte’s chief executive, said: "Completion of the US$633mln project funding package for the construction of Araguaia was the most significant milestone in Horizonte's journey to date.
“With an experienced team in place in Brazil, it is the start of a very exciting phase for the company as the two-year build of Araguaia commences.”