Horizonte awards three more contracts for Araguaia study

Brazil-focussed nickel development company Horizonte Minerals announced on Tuesday that, further to its previous announcement on 6 March, it awarded further contracts for key parts of the feasibility study for its 100%-owned Araguaia nickel project.

The AIM-traded firm said the contracts awarded included to Steinweg Handelsveem for material transport and logistics, to SM&A Electrics for power infrastructure and the power transmission line, and to VCE Mine Consultancy for mining permit reporting.

Horizonte said the feasibility study was at an “advanced state” with a number of the principal work streams over 50% complete.

The company's strategy was to position itself as one of the lowest cost nickel producers globally, with the Araguaia Project designed to produce 14,500 tonnes per annum of nickel using the proven rotary kiln electric furnace technology.

Horizonte did not make the value of the contracts immediately clear.

Araguaia, which is 100% owned by Horizonte, is located on the eastern margin of the State of Pará, north-eastern Brazil, to the north of the town of Conceição do Araguaia, south of the main Carajás Mining District.

“The project has good regional infrastructure including a network of federal highways and roads, with access to low tariff hydro-electric power,” the board explained.

“The Carajás Mining District, situated approximately 200km northwest of Araguaia, is host to a number of major iron and copper mines operated by mining major Vale SA.”