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Developing the next major nickel project in Brazil
Slide 1

Why Brazil, why now?

  • Following two years of macro challenge – the Brazilian economy is showing signs of recovery;
  • IMF says “confidence in the Brazilian economy is slowly reawakening” and forecasts positive growth in 2017;
  • The country’s benchmark equity index has risen ~60 percent to date in 2016 & investment returned to 2009 level; and,
  • US$64 billion in new infrastructure investments announced by federal government in June 2015, China expected to invest more than US$17 billion.


Brazil and mining today

  • Well established regulatory system for mining;
  • Strong mining jurisdiction;
  • Devalued currency increases purchasing power for miners;
  • Production costs falling, such as labour and real-estate (Itau Bank); and,
  • Brazil one of the main drivers of LATAM investment in mining (BMI Research). 


Development Pathway

Development Pathway


Araguaia permitting well advanced

The areas within the Project are located 100% within the Pará State, therefore the Project will continue to be permitted by the State Environmental Agency. The Brazilian mine permitting process with environmental agencies has three key stages:

  1. The recently obtained preliminary licence (“LP”);
  2. The installation licence (“LI”), which permits the start of construction; and,
  3. Finally, the licence to operate once construction is complete (“LO”).

The granting of the LP is often regarded as the most important licence as it outlines the parameters of the Project as agreed upon by all stakeholders and is the only environmental licensing process that requires approval of the State Government Environmental Council. The LP was awarded to Horizonte Minerals for HZMA in early 2016.

The Company is now focussed on obtaining the LI, which once awarded, in parallel with the mining concession, allows construction to start. The Company will also work in partnership with the State Government of Pará to undertake studies identifying possibilities for use of the slag product from Araguaia and potential local industries, which could benefit from the final ferronickel product.

The objective of the Company’s Sustainability Department in 2017 will be to collect new baseline data, particularly for the recently acquired GAP project area, and integrate the environmental and social data for the project, to provide one holistic analysis of combined social and environmental impacts. The Feasibility Study will be conducted to international standards, such as the International Finance Corporations Environmental and Social Performance Standards.

Araguaia Permit Process