UK-based Horizonte Minerals has awarded an electro-mechanical contract to MIP Engenharia & Milplan Engenharia (MIP/Milplan) for its fully-owned Araguaia nickel project in the Pará State in northern Brazil.
According to Horizonte Minerals, the mobilisation of the MIP/Milpan workforce is already underway to start the furnace assembly activities on site at the nickel project.
Horizonte Minerals said that the electro-mechanical award will take the level of committed expense on the Araguaia nickel project to more than $400m.
MIP/Milplan is said to have won the contract through a competitive tender process. The company has prior rotary kiln-electric furnace experience having worked at Vale’s Onça Puma ferronickel mine, along with various other mining projects in the Carajas region.
Vale’s Onça Puma has a similar processing flow sheet to the Araguaia nickel project, said Horizonte Minerals.
Horizonte Minerals CEO Jeremy Martinc said: “We are pleased to welcome Milplan Engenharia & MIP Engenharia, both world-class partners, to the team for the construction of Araguaia and we look forward to building a long-term relationship with them.
“MIP/Milplan have a proven track record of successfully delivering large projects in Brazil and across the mining sector, in particular a wealth of experience at a similar ferronickel project, having worked on Vale’s Onça Puma ferronickel mine.
“This is another important step forward in the construction of Araguaia, further de-risking the Project’s timeline, which remains on schedule for first nickel in Q1 2024. With the award of every new contract, we take a step closer to our objective of becoming a global leader in primary nickel production.”
Located in the Carajás mining district, the Araguaia nickel project is expected to produce up to 29,000 tonnes of nickel annually to supply the stainless-steel market.
Construction on the Brazilian nickel project began in May 2022. The initial capital cost of the nickel development project was estimated at $443m.
