Horizonte Minerals PLC, the nickel development company focused in Brazil, has awarded the Engineering, Procurement and Construction Management (EPCM) contract for the construction of its 100% owned Araguaia ferronickel project to Pöyry Tecnologia Ltda, the Brazilian subsidiary of global engineering services firm AFRY.

The project comprises an open pit nickel laterite mining operation that delivers ore from a number of pits to a central rotary kiln electric furnace (RKEF) metallurgical processing facility. The metallurgical process comprises a single line (RKEF) to extract FeNi from the ore. After an initial ramp-up period, the plant will reach a full capacity of approximately 900,000 t of dry ore feed per year to produce 52,000 t of ferronickel, in turn containing 14,500 t of nickel per year. The FeNi product will be transported by road to the port of Vila do Conde in the north of the State for sale to overseas customers.

AFRY is a global leader in engineering, design and advisory services with specialist expertise and a strong track record in delivering pyrometallurgical projects for the metals and mining industry. Award of the EPCM contract to AFRY follows a comprehensive and competitive global tender process. The EPCM contract, awarded via the Company’s wholly owned subsidiary Araguaia Niquel Metais Ltda, involves the provision of a comprehensive range of services across engineering, procurement, construction management, project management and commissioning.

In line with the award of the EPCM contract, Horizonte says it has been building an experienced owner’s team to work alongside AFRY. Under the guidance of Mike Drake, as Head of Projects, the company has assembled a strong project leadership team with a successful track record of implementing large scale projects in Brazil with a particularl focus on the ferronickel industry. The project leadership team is now complete and mobilised at both the company’s Belo Horizonte and Conceição do Araguaia offices. The full owner’s team totals 85 people across all key disciplines. Horizonte’s owner’s team will work closely with Pöyry to provide direction and governance. Pöyry has been working with the company since Q3 2021 to undertake early works and other execution preparation phase services.

Horizonte CEO, Jeremy Martin commented: “We are delighted to welcome AFRY, another world class partner to the team for the construction of the Araguaia project. AFRY is a leader in its field and has a strong track record of successfully delivering metals and mining projects. We have been working with the local Pöyry team for several months in our project execution planning phase to ensure a smooth transfer to the construction phase of Araguaia. Araguaia will be delivered according to an EPCM strategy, in partnership with AFRY. The Horizonte owner’s team will be integrated into the AFRY team with clear roles and responsibilities which is standard practice in Brazil. In parallel with the award of the EPCM contract we have built out our owner’s team with a focus on key individuals in the ferronickel space in Brazil, resulting in the Company we now having a very strong in-country team. The quality of the Araguaia project, the relevance of the nickel industry in the clean energy transition and Horizonte’s high sustainability standards has enabled us to secure the industry’s leading talent.”