Horizonte Minerals breaks ground at Araguaia Nickel Project in Brazil

A groundbreaking ceremony was held yesterday at Horizonte Minerals’ Araguaia project in Brazil, marking the start of construction at the nickel development company’s flagship project.

Horizonte will now embark on a two-year construction timeframe for the Stage 1 mine, which will produce 14,500 tonnes per annum (tpa) of nickel. Araguaia is set to become a large high-grade, scalable, low cost producer with a long mine life and a low carbon source of ferronickel, the company said.

“We are extremely excited to have broken ground at our fully funded Araguaia project,” said Horizonte CEO Jeremy Martin. “We are a step closer to achieving our vision of bringing this project into production and generating first revenues. This all comes at a time where the nickel market is facing constrained supply which will benefit Horizonte as we become a globally significant producer.”

AIM and TSX-listed Horizonte has awarded the majority of the key long-lead equipment contracts, including those for the furnace, earthworks and EPCM contracts, while making progress around early works and site preparation ahead of the main mobilisation of the earthworks contractor.

“Whilst we are facing inflationary pressures along with all other global projects, to date we have been able to award approximately 50% of our pre-contingency project direct capex [equating to US$270 million] on budget, which is a very positive result,” Martin added.