Horizonte Minerals Plc (AIM: HZM | TSX: HZM) a nickel company developing two Tier 1 assets in Brazil, has provided a progress update for its flagship 100% owned Araguaia Nickel Project.
Horizonte’s CEO, Jeremy Martin said, “We are pleased with the progress that has already been made at Araguaia, with the project remaining on schedule to produce first nickel in Q1 2024. There has been substantial progress in the four months since we mobilised to site and broke ground in May with the foundations of the furnace and rotary kiln well advanced and earthworks close to complete.”
Highlights from the operational update include that construction is progressing to schedule with overall project progress of approximately 16% as at 30 September 2022 and engineering approximately 71%. A total of US$375M of capital commitments have been spent on budget as of the end of August 2022. The company has also stated that there has been over 375,000 hours worked on the project so far, with no lost time or injuries recorded to date.
However, due to Inflationary pressures combined with engineering improvements to de-risk the operation, Horizonte has reported that there has been a 12.6% cost increase with total project capex now forecast at U$537M. Overall, the project remains on schedule to deliver first nickel in Q1 2024.
We have updated our forecast operating costs and are pleased to report that we believe Araguaia is and will remain in the lowest cost quartile versus a peer group who, over the last 24 months, have seen significant operational cost increases. By using the low-cost hydroelectric power available to Araguaia, we will ensure that our high grade FeNi product will be a new leading low carbon emissions product in the market.” Jeremy added.
To find out more, please visit www.horizonteminerals.com
