Make Kitco Your Homepage

Horizonte Minerals signs $135 million equipment contracts for Brazil nickel project

Kitco News

Aug 4 (Reuters) - Horizonte Minerals said on Thursday that it had signed $135 million in contracts with machinery suppliers for the Araguaia nickel project in Brazil.

The London-listed miner expects the equipment to begin arriving in the northern Pará state, where the project is located, in October, with operations scheduled to begin in 2024, said Horizonte's head of finance, Tiago Miranda.

The Araguaia project, which Horizonte acquired from Glencore in 2015, will initially produce up to 14,500 tonnes of nickel per year, but this figure could reach 29,000 tonnes after a second production line comes online in 2027, the company said.

Late last year, Horizonte secured a $633 million financing package to develop the project.

Total capital expenditure for the construction of the first production line is estimated at $500 million, according to the company, which plans to use the additional funds as working capital and to finance the second line.

(Reporting by Rafaella Barros; Editing by Daniel Wallis)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.