(Alliance News) - Horizonte Minerals PLC on Monday said it has awarded Wood PLC, a project delivery and technical services business, the principal engineering contract for its Vermelho project in Brazil.
Horizonte is a London-based nickel company with operations in Brazil's Pará state. Its two key projects are at the Araguaia and Vermelho sites, which are both large scale, high-grade, low-cost and low-carbon.
The contract is for the undertaking of the feasibility study at Vermelho. Horizonte said this award was a "key milestone" as it advances towards its long-term objective of becoming a 60,000 tonne per year nickel producer.
Vermelho is designed to produce 25,000 tonnes of nickel, and 1,250 tonnes of cobalt per year over a 38-year mine life.
The feasibility cost estimate will be completed to AACEI class three standard. Additional contracts that are in the final stages of being awarded include pilot test work, mining, hydrogeology, hydrology, infrastructure and logistics packages.
Environmental licencing for Vermelho is well advanced, with key regulatory submissions, forming the basis for the construction licence issuance.
Chief Executive Officer Jeremy Martin said: "We are pleased to be working with Wood plc to deliver the Feasibility Study for the Vermelho Project. The commencement of the FS is an important step forward in unlocking Vermelho's significant value. There are very few nickel resources of this scale and quality at an advanced stage of development, leaving Vermelho well positioned to capitalise on the growing demand for sustainable critical metals. "
Horizonte shares were trading 1.1% higher at 89.98 pence each in London on Monday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Horizonte Minerals (HZM)