Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) said it has awarded all major and long-lead-time process plant equipment contracts for its flagship Araguaia nickel project in Brazil, a significant de-risking event for the project.
It also provides more certainty on costs for a significant portion of the overall capital expenditure and builds confidence in the project’s schedule by gaining commitments for the delivery of key equipment on site within a required timeframe, it said.
"Completing the award of these key process related contracts is a major milestone for the development of Araguaia as, together with the previously announced award of the furnace contract, this represents around US$135mln of capital expenditure on the project and provides increased confidence in our planned development timelines,” said chief executive Jeremy Martin.
“The first pieces of equipment are expected on site during Q4 of this year, in line with the overall project schedule.
“To date we have awarded contracts totalling US$293mln (including the US$135mln of process equipment noted above) on budget and on time, which continues the positive momentum building at Araguaia,” he said.
The rotary kiln, rotary dryer and associated dust handling equipment supply contract has been awarded to FLSmidth A/S, while Metso Outotec Oyj will supply a primary dust control system for the reduction and refinery furnace.
Other contracts have been awarded to Uvån Hagfors Teknologi AB, Inteco Melting and Casting Technologies GMBH and other leading suppliers to the ferronickel industry, it said.
Araguaia is fully funded and is expected to produce 29,000 tonnes of nickel per year to supply the stainless steel market.