19th Jun 2014 10:07
LONDON (Alliance News) - Horizonte Minerals PLC Thursday said it has filed the Social Environmental Impact Assessment for its 100%-owned Araguaia nickel project in northern Brazil.
The company's Araguaia Nickel Project is located south of the Carajas mining district in Pará State.
The nickel development company focused in Brazil, said it is currently developing Araguaia towards the Feasibility Stage in the second half of this year, and said it hoped to receive the full Social Environmental Impact Assessment approval either in the fourth quarter of this year, or the first quarter of next year.
The Social Environmental Impact Assessment involves the approval to issue a preliminary licence, which is valid for three years in Pará and would authorise the next stages of work for the development of the project.
The granting of the preliminary licence is the first stage in a three-stage environmental licencing process to develop a mine in Brazil.
"The completion and filing of the SEIA for Araguaia marks a significant de-risking step for the project, as we work with local stakeholders, communities and government agencies towards the development of the next major nickel mine in Brazil," said Chief Exeucitve Officer Jeremy Martin in the company's statement.
The company is aiming to start production of the Araguaia project in 2017, and is initially targeting 15,000 tonnes per annum of nickel. At these production rates, the project has a net present value of USD519 million and an internal rate of return of 20%, with a capital cost of USD582 million.
Shares in Horizonte Minerals were down 1.8% at 6.26 pence Thursday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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