The financing has been approved by Denmark’s Export Credit Agency (EKF) and Finnvera, Finland’s Export Credit Agency


Araguaia project consists of two main mining centres. (Credit: Horizonte Minerals.)

Horizonte Minerals has secured approval from two export credit agencies (the ECAs) for $146.2m financing for its Araguaia ferro-nickel project in Brazil.

The financing has been approved by Denmark’s Export Credit Agency (EKF) and Finnvera, Finland’s Export Credit Agency.

It is expected to partly fund construction and development of the Araguaia project, which is 100% owned by Horizonte.

Horizonte CEO, Jeremy Martin said: “The receipt of formal credit and board approvals from two export credit agencies for the guarantee of a large component of the Senior Debt Facility is an outstanding achievement for Horizonte.

“The Senior Debt Facility is set to provide a significant portion of the funding required for construction of the Project.

“We look forward to announcing credit approval from the balance of Senior Lenders during the remainder of the third quarter, as well as further key financing milestones.”

Located south of the Carajás Mining District in the Pará State, north Brazil, Araguaia is said to be a Tier 1 mining project with a high-grade scalable resource.

The feasibility study (FS) outlines an open pit nickel laterite mining operation, with an initial mine life of 28 years.

According to Horizonte, a central rotary kiln electric furnace (RKEF) metallurgical processing facility will receive ore from the mining operation.

The project consists of two main mining centres that include Araguaia Nickel South (ANS) and Araguaia Nickel North (ANN).

ANS hosts seven deposits namely Pequizeiro, Baião, Pequizeiro West, Jacutinga, Vila Oito East, Vila Oito West and Vila Oito, while ANN hosts the Vale do Sonhos deposit.

For the remaining part of the project financing, Horizonte is nearing completion of the credit approvals by the senior lenders.

Martin said: “We are now reaching the culmination of this complex funding process which will see us secure the initial capex required to develop Araguaia, our 100% owned tier 1 ferro-nickel project. With construction scheduled to commence on completion of funding this is a very exciting time for Horizonte.”

In April this year, Horizonte awarded a contract for the environmental and social impact assessment (ESIA) for its 100% owned nickel cobalt Vermelho project to Ramboll.