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LONDON (Alliance News) - Horizonte Minerals PLC Wednesday said its subsidiary, Araguaia Niquel Mineracao, has received priority status from the state of Pará's Department of Industry, Commerce and Mining to help fast-track the development of its Araguaia nickel project in Brazil.
The company's Araguaia project is located south of the Carajas mining district in Pará State, situated on the lower-reaches of the Amazon in northern Brazil.
The nickel development company, focused in Brazil, said it is the first mineral resource company to become a member of the state's incentive plan, which is a key part of the state's plan for attracting new business by accelerating the development process of strategically important projects for the economic and social development of Para.
The company said the Araguaia project will now receive priority treatment from the various regulatory, environmental and administrative organisations with which it will interact along its development path.
Horizonte Minerals filed its Social Environmental Impact Assessment for the project last week and is currently developing Araguaia towards the Feasibility Stage in the second half of this 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 licensing process to develop a mine in Brazil.
"Following swiftly on from our completion and filing of the SEIA for Araguaia we are delighted to be the first mineral resource company to receive the priority approval from Brazil's Parà State," Chief Executive Jeremy Martin said in a statement. "This will ensure that the project receives fast-track prioritised status with the main permitting authorities and that we receive direct support from the Parà State government as we develop Araguaia."
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.
Horizonte Minerals shares are up 0.4% at 6.40 pence early Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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