Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) said it will help provide a programme to train the local community in core skills to enable them to work on the construction and operation of its Araguaia nickel project in Brazil.
Horizonte signed an agreement with Brazil's leading national industrial training provider, Serviço Nacional de Aprendizagem Industrial (SENAI), to host the community skills training programme.
Under a two-year partnership, Horizonte will fund approximately 2mln Brazilian Reais (about £300,000) to enable technical training organisations to deliver more than 390 accredited traineeships in partnership with Universidade do Estado do Pará (UEPA), the state university.
The first round of training has started with 62% of the participants reporting that that they are unemployed. Around 20% of the participants are women, 37% of participants are between 18 and 25 years old, with 58% under the age of 33.
"Local content - both local employment and local procurement - is a critical contribution that mines make to community economic development,” said Horizonte chief executive Jeremy Martin. “In partnership with SENAI, it is our objective to up-skill local community members in industry-certified, market-ready, transferable industrial skills, such as welding and electro-mechanical construction.”
Araguaia is forecasted to employ more than 2,500 workers at the peak of construction and up to 500 personnel directly in the operational phase, with many to be engaged by local and national contractors.
“This is another example of the uplift that a well-designed mine construction can have on the local community,” said analysts from Peel Hunt. “As well as direct provision of jobs the requirement to acquire trades and skills can have an even larger effect on host communities.”
“Even if the training doesn't result in jobs at Araguaia, the extra skills gained should come in useful in securing employment elsewhere,” they noted.
Peel Hunt has a ‘buy’ recommendation and 280 pence target price for Horizonte.
Horizonte shares were up 0.5% at 103.50p in morning trading, outperforming the AIM all-share index.
Horizonte is developing two tier one projects in Brazil’s Pará state: Araguaia and the Vermelho nickel-cobalt project.