Tag Archives: Araguaia

FLSmidth, Metso Outotec, UHT and Inteco awarded Horizonte Araguaia nickel work

Horizonte Minerals says it has awarded all major and long-lead-time process plant equipment contracts for its flagship Araguaia nickel project in Brazil, with FLSmidth, Metso Outotec, Uvån Hagfors Teknologi AB (UHT) and Inteco Melting and Casting Technologies GMBH named as recipients.

Following completion of the competitive tender processes and detailed negotiations, the company has now secured equipment supply and technical support services for the balance of the Araguaia process flowsheet from these leading suppliers, it said. This is in line with the strategy employed for the award of the furnace contract to Hatch Ltd earlier this year.

“The successful completion of these contract awards is a significant de-risking event for the project,” it said. “Importantly it provides more certainty on costs for a material portion of the overall capital expenditure and builds confidence in the project schedule by gaining commitments for the delivery of key equipment on site in the timeframe required.”

To date, the company has awarded contracts totalling $293 million (including the $135 million of process equipment noted above) on budget and on time, according to CEO Jeremy Martin.

The rotary kiln, rotary dryer and associated dust handling equipment supply contract has been awarded to FLSmidth. FLSmidth, Horizonte says, is a market-leading supplier of engineering, equipment, and service solutions, particularly to the ferronickel industry, notably to Anglo American’s Barro Alto and Vale’s Onca Puma nickel operations in Brazil. FLSmidth has a strong track record of providing equipment and technical support services, with extensive experience in processing ore with characteristics similar to Araguaia, it said.

The ore preparation equipment contract involves the provision of primary, secondary and tertiary crushing, as well as the apron feeder that feeds the dryer. A primary dust control system for the reduction and refinery furnace, in addition to the secondary dust removal system, will also be supplied. This contract has been awarded to Metso Outotec, a leader in end-to-end solutions and services for the minerals processing and metals refining industries. Metso Outotec, Horizonte says, has extensive experience in providing equipment for the mining industry, including for operations worldwide with similar processing plants. It has a substantial presence in Brazil to provide ongoing technical support.

Horizonte has also awarded a contract for the supply of metal granulation equipment to UHT and a contract for the supply of the refinery equipment package to Inteco, which will transform the crude ferronickel produced by the electric arc furnace to high grade ferronickel for sale to customers.

The Araguaia 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/y of dry ore feed to produce 52,000 t of ferronickel, in turn containing 14,500 t/y of nickel. 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.

Horizonte enlists Copa Construção SA for Araguaia ferronickel project earthworks

Horizonte Minerals, a nickel development company focused in Brazil, has awarded the earthworks contract for the construction of its 100%-owned Araguaia ferronickel project to Copa Construção SA.

Copa is a leading Brazilian company with extensive experience in mining projects and civil infrastructure, ranging from roads, viaducts, hydroelectric power plants, ports, airports and transmission lines, Horizonte explained. Copa has a portfolio of more than 2,500 cu.m of concrete installed throughout the country and has a quality management certification.

Awarding the earthworks contract is an important step in the construction of Araguaia. The scope of the contract incorporates the process plant and supporting infrastructure components of the bulk earthworks for the ferronickel plant. The contract scope is designed to ensure the site is ready for the civil construction works on completion, and will see Copa levelling the main plant area, creating a series of stepped plateaus that will support the key process equipment packages and buildings, installing initial drainage facilities, as well as the main ramp and crusher platform.

CEO of Horizonte, Jeremy Martin, said: “We are delighted to welcome Copa as a key partner for the construction of our Araguaia Project. With Copa’s strong track record of successfully delivering infrastructure projects across the country, signing this contract enables us to commence construction at the beginning of the dry season this quarter as planned.

“This is another important milestone in our 24-month project construction timeline, with next steps being the award of the civil works, 230 kV powerline and electromechanical construction contracts. We look forward to keeping the market updated on developments at site.”

The Araguaia 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/y of dry ore feed to produce 52,000 t of ferronickel, in turn containing 14,500 t/y of nickel. 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.

Horizonte granted construction permit for Araguaia nickel project in Brazil

Horizonte Minerals has been awarded the construction licence for the development of its 100%-owned Araguaia ferronickel project in Brazil.

The award of the licence, called Licença de Instalação (LI) in Portuguese, was granted by SEMAS, the Brazilian Pará State Environmental Agency. It allows the London- and Toronto-listed company to construct the rotary kiln electric furnace (RKEF), processing plant and associated infrastructure, the company said.

Receipt of the permit follows release of the feasibility study (FS) in October 2018. This study envisaged a $443 million project able to produce an average of 14,500 t/y of contained nickel, within some 52,000 t of ferronickel. It also showed the potential for a doubling of production capacity to 29,000 t/y.

Jeremy Martin, CEO of Horizonte, said: “I am very pleased to announce the award of the LI for Araguaia as this is a major milestone for the company. Subject to funding, the company is now in a position to commence construction with the necessary environmental permits approved, including water abstraction permits issued in 2018 together with the newly issued LI.

“The LI award follows on closely from the completion of the FS, demonstrating that Araguaia is a Tier 1 asset with the potential to be a low-cost supplier of nickel in the form of high-grade ferronickel to the stainless-steel industry. Over the initial 28-year mine life, Araguaia is expected to generate cash flows after taxation of $1.6 billion and sits on the lower half of the global cost curve.”

Araguaia is in the southeast of the Brazilian state of Pará, some 760 km south of the state capital Belém. The project comprises an open-pit nickel laterite mining operation that mines 27.5 Mt of reserves over the mine life. The metallurgical process comprises a single line RKEF to extract ferronickel from the laterite ore.

The RKEF plant and project infrastructure will be constructed over a 31-month period. After an initial ramp-up period, the plant is expected to reach full capacity of approximately 900,000 t/y of dry ore feed.