Horizonte Minerals plc has awarded all major and long-lead-time process plant equipment contracts for the Araguaia nickel project in Brazil.
CONTRACTS
The company said it had secured equipment supply and technical support services for the balance of the Araguaia process flow sheet from leading global suppliers.
Horizonte will work with FLSmidth A/S, Metso Outotec Oyj, Uvån Hagfors Teknologi AB, Inteco Melting and Casting Technologies GMBH and other leading suppliers to the ferronickel industry.
The awards help de-risk the project and provide greater certainty on costs for a material portion of the overall capital expenditure, said the company.
BEST IN CLASS
Chief executive Jeremy Martin added that together with the furnace contract, the awards represented some US$135 million of expenditure and increased confidence in planned development timelines.
“The first pieces of equipment are expected on site during Q4 of this year, in line with the overall project schedule.
“To date we have awarded contracts totalling US$293 million on budget and on time, which continues the positive momentum building at Araguaia.
“From the outset we have pursued a strategy of working with best-in-class partners.
“It is pleasing to see all our contracts awarded to tier 1 industry-leading suppliers who bring significant experience and successful track records at similar projects in Brazil to our already experienced team.”
Mr Martin added that FLSmidth and Metso Outotec had played a key role in the project’s development strategy and underpinned a “significant” portion of Horizonte’s export credit agency linked financing.