REG - Horizonte Minerals - Award of Furnace Contract to Hatch

Horizonte MineralsAnnouncement

25/02/2022 07:16

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RNS Number : 7836C  Horizonte Minerals PLC  25 February 2022

NEWS RELEASE

25 February 2022

 

Horizonte Minerals Plc

("Horizonte" or the "Company")

 

Award of Furnace Contract to Hatch Ltd. for the Araguaia Project

 

Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) the nickel company focused on
Brazil is pleased to announce that, following a competitive tendering process,
Hatch Ltd. ("Hatch") has been selected as the furnace supply vendor ("the
Furnace Contract") for the Araguaia ferronickel project ("Araguaia" or the
"Project").

 

Hatch is the leading supplier of electric furnaces to the ferronickel
industry, with a strong track record in South America, which includes both
Anglo American's and Vale's nickel operations in Brazil and South 32's Cerro
Matoso operation in Colombia.

 

Hatch will supply Horizonte with a circular electric arc furnace rated at 60
megawatt, a calcine transfer system to feed the furnace with 835,000 tonnes
per annum of calcine and additional services to ensure successful installation
and commissioning. This is termed "the Furnace Process Island", where linked
process equipment is procured from one supplier to reduce interface risks and
ensure that the entire furnace process delivers to nameplate capacity.

 

 

As part of the Furnace Contract, Hatch has also been engaged to provide
execution phase preparation services including:

 

·  Basic engineering of the Furnace Process Island, which has been
substantially optimised since the publication of the Project's Feasibility
Study.

·  Planning services to ensure that the furnace components can be supplied
and delivered to align with the execution schedule.

·  Commissioning, operational readiness and production ramp-up planning
services for the complete ferronickel facility from initial ore preparation to
final product.

 

In addition to awarding the Furnace Contract, the Company is finalising
contracts for Engineering, Procurement and Construction Management, all the
other major process equipment, overland power line, earthworks and civil
works.

 

Horizonte's procurement strategy is based on four key principles:

 

·  Flowsheet design based on a conventional process that is well within the
operating parameters benchmarked throughout the ferronickel industry. The
design has been further validated through extensive test work and continuous
pilot testing.

·   Use of leading equipment suppliers and services providers who have a
successful track record of delivering ferronickel projects and other major
industrial projects in Brazil.

·  Application of the process island concept, where equipment that is
linked together in the flow sheet is procured from one leading vendor, to
reduce interface risk also enabling whole systems to be optimised.

·  Establishment of an Owner's Team of experienced Brazilian and global
projects personnel, supported by an expert advisory panel with decades of
ferronickel project design, project delivery and operational experience.

Alongside procurement, early works continue on site which include geotechnical
drilling, site access upgrades and temporary site facilities. The Project is
well positioned to start the main earthworks at the start of the dry season in
early Q2 2022.

 

Horizonte CEO, Jeremy Martin commented: ""Completion of the US$633 million
project funding package for the construction of Araguaia was the most
significant milestone in Horizonte's journey to date. With an experienced team
in place in Brazil, it is the start of a very exciting phase for the Company
as the two-year build of Araguaia commences.

 

During H2 2021, the team undertook an extensive competitive tendering process
across the key equipment packages with tier one vendors that make up the
process flow sheet for the development of Araguaia.  We are pleased to award
the Furnace Contract to Hatch and have them as part of the engineering and
delivery team, at Araguaia, bringing their significant experience in
delivering large scale, successful ferronickel projects. The knowledge and
guidance Hatch has already provided in our execution preparation has been
invaluable in terms of ensuring the entire production system is fully
integrated and performs to plan.

 

We are bringing together a highly experienced group of partners to operate
alongside us as we work to deliver Araguaia safely, on time, on budget and
with the ongoing support of our communities. With early works underway we look
forward to site ground-breaking and the main earthworks commencing at the
beginning of the dry season in early Q2.

 

With the nickel price reaching decade long highs and the clean energy
transition dramatically increasing the demand for nickel in both stainless
steel and battery markets, there has never been a better time to be bringing a
new, low-carbon, scalable nickel project online. There are very few other
projects in the near-term global pipeline that match the economic and
sustainability credentials of Araguaia. Whilst we are focused on delivering
stage one of the Project, our expanding team is also able to progress our
expansion plans to double production at Araguaia alongside bringing Vermelho
to a construction decision. It is a very exciting time for the business, and
we look forward to keeping investors updated as these workstreams progress."

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014, as retained in the UK pursuant to S3 of the European
Union (Withdrawal) Act 2018.

 

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

 Anna Legge (Corporate Communications)

 Peel Hunt (NOMAD & 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

 

About Horizonte Minerals:

Horizonte Minerals plc (AIM & TSX: HZM) is developing two 100% owned, tier
one 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 as described herein, statements with respect to the
potential of the Company's current or future property mineral projects; the
success of exploration and mining activities; cost and timing of future
exploration, production and development; 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 ability of the Company to complete the
Placing as described herein, and the realization of mineral resource and
reserve estimates. 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 as
described herein, 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, the inability of the Company to complete the Placing on the terms as
described herein, and various risks associated with the legal and regulatory
framework within which the Company operates. 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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