Araguaia, one of the largest undeveloped ferro-nickel projects in the world, could produce about 52,000 tonnes of ferronickel a year over a mine life of 28 years, Horizonte Minerals
A feasibility study of the open pit nickel laterite mining project, in northern Brazil’s Para state, estimates life-of-mine cash flows, after tax, of US$1.6 billion, using a base case nickel price of US$14,000 per tonne (US$6.35 per lb.).
But the post-tax net present value estimate of US$401 million in the study falls below the US$443 million forecast for pre-production capex, while the post-tax internal rate of return of 20.1% is below the 26.4% forecast in a March 2016 prefeasibility study.
The current study released today estimates pre-production costs, which included US$65.3 million of contingencies, could be paid back in just over four years.
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