Horizonte Minerals now has a fully permitted ferronickel projects on the books, and must set out to secure funding.
Horizonte Minerals (TSX:HZM,LSE:HZM) has secured another construction license for its Araguaia ferronickel project in Brazil, a step that means the project is now fully permitted for construction.
In a Monday (January 14) release, the company reported that the Brazilian Pará State Environmental Agency (SEMAS) has granted the permit.
The company says the license “represents a major de-risking step for Araguaia,” which according to Horizonte will produce 52,000 tonnes of ferronickel (containing 14,500 tonnes of nickel) per year over a 28-year mine life when fully operational.
The latest permit is for equipment at its processing plant and associated infrastructure, and follows the release of a feasibility study last year.
Horizonte CEO Jeremy Martin said that besides funding (Araguaia has a capital cost estimate of US$443 million), “the company is now in a position to commence construction with the necessary environmental permits approved.”
Martin added that a construction permit has been delivered on time and on budget, crediting Horizonte’s team for working closely with SEMAS, other state agencies and local communities in Para state.
“We developed integrated solutions focused on environmental protection, water efficiency and socio-economic development,” said Martin.
The company will be working to secure funding for the project, which it says “positions Horizonte well for 2019″ combined with the “positive fundamentals around the nickel market.”
Minerals from Araguaia will be aimed at the stainless steel industry, but Horizonte has noted that increased demand for nickel (backed by the battery sector) should raise prices and support the project.
For the battery sector, Horizonte also has its second project, Vermelho, which it is also advancing.
On the London Metal Exchange, nickel has been trading up every day since the beginning of 2019 — and is so far up to US$11,415 a tonne after beginning at US$10,435 on January 2.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.