Horizonte on track with Araguaia construction

15th Dec 2022 15:54

(Sharecast News) - Horizonte Minerals said in an update on Thursday that it was continuing to make "good progress" on the construction of its wholly-owned Araguaia nickel project in Brazil, which remained on-budget and on-schedule to start production in the first quarter of 2024.

The AIM-traded firm said that as of 30 November, about 28% of the total project construction programme had been completed.

Earthworks were "significantly advanced", and due to be finished in January.

The board said the detailed engineering works, meanwhile, were now 87% complete and set to be concluded during the first quarter of next year.

Around 75% of capital expenditure had been awarded to date, amounting to more than $415m, with the key long-lead items are running to schedule with the furnace shell due on site in late December, and the rotary kiln due to be delivered early in the first quarter.

"We are very pleased with the construction progress achieved to date which places us in a strong position to deliver the project on-budget and on-schedule, and most importantly with a strong safety track record," said chief executive officer Jeremy Martin.

"We are also very pleased to have drawn from the senior debt facility, a core part of the overall funding package of Araguaia."

At 1523 GMT, shares in Horizonte Minerals were up 3.03% at 146.3p.

Reporting by Josh White for Sharecast.com.