Horizonte Minerals Plc (AIM: HZM) has entered into two long-term port agreements, thereby securing access for the import of required raw materials and the export of its final ferro nickel product, for its 100%-owned Araguaia Nickel Project in Brazil, where construction is underway, and first production remains on track to commence in Q1-2024.
Jeremy Martin, CEO of Horizonte Minerals, commented, “As we move closer to our first debt draw down, these port contracts are a key condition to accessing the debt facility, another example of the progress we are making in terms of de-risking the project.
Horizonte has awarded the contracts to Grupo Atlantica Matapi and Santos Brasil Tecon Vila do Conde, both established operators in the Port of Vila do Conde in Pará State. These five-year contracts (with an option to extend for a further five years) are in line with Horizonte’s feasibility cost, once adjusted for the foreign exchange rate, and represent another key de-risking milestone for the project.
As well as being the closest port to Araguaia, Vila do Conde also provides bonded warehouse services, laydown areas, loading and storage facilities in line with the company’s operational requirements. Further, by securing the same port for both contracts, synergies exist through back haulage of consumables and ferro nickel product allowing for both the inward and outward journeys to be utilised maximizing the cost savings.
“With every new partnership we enter into, we take a step closer to unlocking the full potential at Araguaia, and more broadly across Horizonte’s portfolio, and realising our objective of becoming a low-cost nickel producer.” Jeremy Added.
Santos Brasil Tecon Vila do Conde (Tecon) has some of the largest and most complete logistics complexes in Brazil, responsible for 18% of all container and cargo moving in the country. It operates the largest container terminal in Latin America and is one of the three most efficient in Brazil. Its principal customers are Vale, Votoratim Metais and Norsk Hydro.
Grupo Atlantica Matapi (Matapi) is a major port operator in northern Brazil with several operational ports. It owns the largest private terminal with extensive infrastructure and capacity for up to 160,000t of storage. Its principal customers are Vale, Votoratim Metais, and Alunorte.
To find out more, please visit www.horizonteminerals.com
