Horizonte buys ferronickel processing equipment for Araguaia

As part of a plan to fast-track the movement of its project, UK-based producer Horizonte Minerals said its Araguaia Niquel Metais (ANM) arm is acquiring both new and used ferronickel processing equipment for its Araguaia project in Brazil.

The deal with seller Companhia Brasileira de Alumínio (CBA), part of investment group Votorantim SA, was made for US$600,000 cash up front, with a total potential consideration of up to $7 million hinging on future development and operational milestone.

The equipment, which includes substation, crushing, rotary kiln, coal system, refining, conveyors, electrostatic precipitator, cooling tower and pneumatic dust collection components, is already located in Brazil at CBA’s Niquelândia operations. The components do not include the furnace.

Horizonte said it is now evaluating the use of selected components as spares and backups as part of its development of the first RKEF line at Araguaia. However, it also sees significant value in utilising some large-scale equipment, including the rotary kiln, to fast-track and lower development costs for a second RKEF line at Araguaia.

“The acquisition of the Processing Equipment is a compelling opportunity for Horizonte to fast-track the development of a second RKEF line at Araguaia, to reach 28,000 tonnes of nickel per year, and at a lower development cost,” said Horizonte CEO Jeremy Martin.

We expect to be able to realise significant savings on our planned development costs given the low cost acquisition of this high quality equipment relative to the original purchase cost of approximately $60 million.

Horizonte said it and its engineering contractors have performed due diligence on the equipment and concluded it is “well suited” for use as part of the second line’s development. It did not indicate a timeline for that line’s development.

Source: Horizonte Minerals

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