REG - Horizonte Minerals - Award of key process plant contracts completed

Horizonte MineralsAnnouncement

13/07/2022 07:00

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RNS Number : 2492S  Horizonte Minerals PLC  13 July 2022

NEWS
RELEASE

13 July 2022

 

Horizonte Minerals Plc

("Horizonte" or the "Company")

 

Completion of awards of key process plant contracts at the Araguaia Nickel
Project

 

Horizonte Minerals Plc (AIM: HZM, TSX: HZM), the nickel development company
with assets in Brazil, is pleased to announce that it has awarded all major
and long-lead-time process plant equipment contracts for the Company's
flagship Araguaia Nickel Project ("Araguaia" or the "Project").

 

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 flow sheet from
leading global suppliers. This is in line with the strategy employed for the
award of the furnace contract to Hatch Ltd. earlier this year (see
announcement dated 25 February 2022).

 

Horizonte is pleased to be working with FLSmidth A/S ("FLSmidth"), Metso
Outotec Oyj ("Metso Outotec"), Uvån Hagfors Teknologi AB ("UHT"), Inteco
Melting and Casting Technologies GMBH ("Inteco") and other leading suppliers
to the ferronickel industry.  The successful completion of these contract
awards is a significant de-risking event for the Project. 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.

 

Jeremy Martin, CEO of Horizonte, commented:

"Completing the award of these key process related contracts is a major
milestone for the development of Araguaia as, together with the previously
announced award of the furnace contract, this represents around US$135 million
of capital expenditure on the Project and provides increased confidence in our
planned development timelines. The first pieces of equipment are expected on
site during Q4 of this year, in line with the overall project schedule. To
date we have awarded contracts totalling US$293 million (including the US$135
million of process equipment noted above) on budget and on time, which
continues the positive momentum building at Araguaia.

 

"From the outset we have pursued a strategy of working with best-in-class
partners. It is pleasing to see all our contracts awarded to tier 1
industry-leading suppliers who bring significant experience and successful
track records at similar projects in Brazil to our already experienced team.
FLSmidth and Metso Outotec in particular have played a key role in our project
development strategy as they underpin a significant portion of our export
credit agency linked financing and we are grateful for the support they and
their respective export credit agencies have provided to date."

 

Summary of Process Plant Equipment Awards

The rotary kiln, rotary dryer and associated dust handling equipment supply
contract has been awarded to FLSmidth.  FLSmidth 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.

 

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, with
presence in more than 50 countries. Metso Outotec 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.

 

 

For further information, visit www.horizonteminerals.com
(http://www.horizonteminerals.com) or contact:

 

 Horizonte Minerals plc                                                     info@horizonteminerals.com (mailto:info@horizonteminerals.com)

 Jeremy Martin (CEO)                                                        +44 (0) 203 356 2901

 Peel Hunt LLP (Nominated Adviser & Joint Broker)                           +44 (0)20 7418 8900

 Ross Allister

 David McKeown

 BMO (Joint Broker)                                                         +44 (0) 20 7236 1010

 Thomas Rider

 Pascal Lussier Duquette

 Andrew Cameron

 Tavistock (Financial PR)                                                   +44 (0) 20 7920 3150

 Emily Moss

 Cath Drummond

 

 

 

About Horizonte Minerals:

Horizonte Minerals plc (AIM & TSX: HZM) is developing two 100%-owned, Tier
1 projects in Parà state, Brazil - the Araguaia Nickel Project and the
Vermelho Nickel-Cobalt Project. Both projects are large scale, high-grade,
low-cost, low-carbon and scalable. Araguaia is fully funded and in
construction. The project will produce 29,000 tonnes of nickel per year to
supply the stainless steel market. Vermelho is at feasibility study stage and
will produce 25,000 tonnes of nickel and 1,250 tonnes of cobalt to supply the
EV battery market.  Horizonte's combined near-term production profile of over
50,000 tonnes of nickel per year positions the Company as a globally
significant nickel producer. Horizonte is developing a new nickel district in
Brazil that will benefit from established infrastructure, including
hydroelectric power available in the Carajás Mining District.

 

 

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain
information contained in this press release constitutes "forward-looking
information" under Canadian securities legislation. Forward-looking
information includes, but is not limited to, the ability of the Company to
complete the acquisition of equipment as described herein, statements with
respect to the potential of the Company's current or future property mineral
projects; the ability of the Company to complete a positive feasibility study
regarding the second RKEF line at Araguaia on time, or at all, the success of
exploration and mining activities; cost and timing of future exploration,
production and development; the costs and timing for delivery of the equipment
to be purchased as described herein, the estimation of mineral resources and
reserves and the ability of the Company to achieve its goals in respect of
growing its mineral resources; the realization of mineral resource and reserve
estimates and achieving production in accordance with the Company's potential
production profile or at all. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or "will
be taken", "occur" or "be achieved". Forward-looking information is based on
the reasonable assumptions, estimates, analysis and opinions of management
made in light of its experience and its perception of trends, current
conditions and expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the date that
such statements are made, and are inherently subject to known and unknown
risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking information,
including but not limited to risks related to: the inability of the Company to
complete the acquisition of equipment contemplated herein, on time or at all,
the ability of the Company to complete a positive feasibility study regarding
the implementation of a second RKEF line at Araguaia on the timeline
contemplated or at all, exploration and mining risks, competition from
competitors with greater capital; the Company's lack of experience with
respect to development-stage mining operations; fluctuations in metal prices;
uninsured risks; environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment obligations; potential
disputes with respect to the Company's title to, and the area of, its mining
concessions; the Company's dependence on its ability to obtain sufficient
financing in the future; the Company's dependence on its relationships with
third parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in countries in which the
Company operates; currency exchange fluctuations; the Company's ability to
manage its growth effectively; the trading market for the ordinary shares of
the Company; uncertainty with respect to the Company's plans to continue to
develop its operations and new projects; the Company's dependence on key
personnel; possible conflicts of interest of directors and officers of the
Company, and various risks associated with the legal and regulatory framework
within which the Company operates, together with the risks identified and
disclosed in the Company's disclosure record available on the Company's
profile on SEDAR at www.sedar.com (http://www.sedar.com) , including without
limitation, the annual information for of the Company for the year ended
December 31, 2020, the Araguaia Report and the Vermehlo Report. Although
management of the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.

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