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"The availability of energy for mining projects is a risk in many countries, and this decree guarantees the company has access to the grid for the full-scale stage one commercial operation with nameplate capacity of 14,500 tonnes of nickel per year," CEO Jeremy Martin said.
The company was awarded a water permit in 2018 and a construction licence earlier this year for Araguaia.
Martin said Horizonte (AIM: HZM, TSX: HZM) was continuing to advance project finance, marketing and offtake discussions.
"The nickel market fundamentals continue to move in the right direction with nickel inventories on the London Metal Exchange down to around 160,000t today and with continued growth drivers on the demand side from stainless steel and the electric vehicle battery market," he said.
A 2018 feasibility study outlined annual production of 52,000t of ferronickel, containing 14,500t of nickel, for the 28-year mine life.
It put initial capex at US$443 million, and the post-tax NPV at $401 million and IRR at 20.1%, using a base case $14,000/t nickel price.
The LME cash nickel price rose about 2% to close at $12,676/t yesterday.
Horizonte shares gained 1.8% in London to 1.98p yesterday but are trading close to a one-year low.
It is capitalised about £28.45 million (US$35.6 million).
