9th Feb 2023 11:39
(Alliance News) - Horizonte Minerals PLC on Thursday said it awarded Brazilian mining company Fagundes Construcao e Mineracao a five-year mining services agreement for its 100% owned Araguaia nickel project in Brazil.
The Para state, Brazil-focused developer of the Araguaia and Vermelho nickel projects said construction is underway is underway at Araguaia and first production remains on track to commence in the first quarter of 2024, with pre-stripping to begin early in the second quarter this year.
It said Fagundes had a strong track record of providing mining services in Para state, while the five-year contract is in line with Horizonte Minerals's operating cost assumptions stated in its feasibility study.
The contract has an option to extend for a further five years and represents another key de-risking milestone, ensuring operational costs will be in the lower quartile of the nickel cost curve, Horizonte Minerals said.
Fagundes will provide a mining fleet consisting of over 70 units at any one time linked to the phase of mining sequence and seasonality, Horizonte Minerals explained, comprising leading brands in terms of safety, embedded technology, performance and reliability.
The core mining fleet will include 45 tonne hydraulic excavators, 35 tonne dump trucks, 28 tonne articulated trucks and 18 tonne wheel loaders.
Horizonte Minerals added all services provided by Fagundes will comply with its health, safety and environmental standards, as well as current legislation.
"We are pleased to be working alongside Fagundes, a leading mining contractor which has been operating in Brazil for over 35 years. With other clients such as Vale and Anglo American, they are an experienced operator with a solid track record," said Horizonte Minerals Chief Executive Officer Jeremy Martin.
"Construction activities at Araguaia continue to run on schedule and on budget, with first nickel expected in [the first quarter of] 2024. As we hit each of our milestones, we continue to move closer to unlocking the full value of Araguaia, and more broadly across Horizonte's portfolio of tier 1 assets, realising our objective of becoming a low-cost nickel producer."
Shares in Horizonte Minerals were down 0.2% at 153.70 pence each in London on Thursday late morning.
By Greg Rosenvinge, Alliance News reporter
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