Horizonte Minerals PLC Announces Securing Long-Term Power for Araguaia




Strong points:

  • Binding power purchase agreements signed covering the first 10 years of production from Araguaia, ensuring that the project will operate in the lowest quartile of global nickel producers;

  • Fixed pricing of $28.4/MWh and $29.6/MWh, for years 0-5 and 6-10 respectively[1], represents a price excluding transport costs approximately 30% lower than that used in the feasibility study; and

  • Electricity in Brazil is generated from renewable sources, in line with Horizonte’s goal of being one of the lowest in CO2 nickel producers in the world.

LONDON, UK / ACCESSWIRE / November 21, 2022 / Horizonte Minerals Plc (AIM:HZM)(TSX:HZM) (“Horizonte” or the “Company”)is pleased to announce that it has entered into long-term power purchase agreements (“PPAs”), securing low-cost renewable energy for its wholly-owned Araguaia nickel project (“Araguaia” or “the project”) in Brazil, where construction is underway and production is on track to begin in the first quarter of 2024.

The PPAs were awarded to a subsidiary of a AAA-rated global energy company and Casa dos Ventos Comercializadora de Energia SA (“CDV”). The PPAs include three underlying contracts with all suppliers using renewable energy, offering a fixed price of $28.4/MWh in years 0-5 and $29.6/MWh in years 6-10 , excluding transport costs and other charges. All contracts are priced in US dollars, mitigating any currency risk, with no inflation adjustments included. This advantageous pricing represents an estimated cost of approx. US$1,400/t Ni when transportation costs and fees are included, compared to approx. US$2,000/t Ni used as the basis for the feasibility study, representing a cost reduction of approximately 30%.

The PPAs will supply 100% of the forecast electricity demand during the start-up period and the first five years of operation, in addition to more than 60% of the forecast electricity demand for the following five years.

Jeremy Martin, CEO of Horizonte Minerals, said: “Given that electrical power will represent approximately one-third of Araguaia’s operational costs, we are very pleased to enter into these fixed-price electricity contracts which are 30% lower than those used in the feasibility study ensuring that our operating costs will be in the lowest quartile globally.

“Furthermore, in line with our goal of becoming one of the least CO polluting countries2 nickel producers around the world, these PPA contracts demonstrate our ability to achieve this goal. By taking advantage of the abundant hydroelectricity available in Brazil, we are able to differentiate ourselves not only from our global peers from a cost perspective, but also from an environmental perspective.

“Given the strong operational credentials of the PPA supplier, we view these contracts as a major risk reduction step for the Araguaia project.”


Casa dos VentosComercializadora de Energia SA (“CDV”) is a Brazilian energy company that develops, constructs and operates renewable energy projects. The company is a leading provider of energy solutions to support consumers in their energy transition and has the largest portfolio of wind and solar projects under development in the country, with approximately 20 GW.

CDVi is a signatory of the United Nations Global Compact and works in line with the 17 Sustainable Development Goals (SDGs) and ESG best practices, preserving local biomes, developing social projects in the communities where it is present and contributing to a low-carbon economy.


Horizonte Minerals plc (AIM & TSX: HZM) is developing two wholly owned Tier 1 projects in the State of Pará, Brazil, the Araguaia Nickel Project and the Vermelho Nickel-Cobalt Project. Both projects are large-scale, high-quality, low-cost, low-carbon, and scalable. Araguaia is under construction with first metal planned for early 2024, once fully operational with lines 1 and 2 it will produce 29,000 tonnes of nickel per year. Vermelho is at the feasibility study stage and will produce 25,000 tonnes of nickel and 1,250 tonnes of cobalt to supply the EV battery market. Horizonte’s combined near-term production profile of over 60,000 tonnes of nickel per year positions the Company as a major nickel producer globally. The three main shareholders of Horizonte are La Mancha Investments S.à rl, Glencore plc and Orion Resource Partners LLP.

For more information, visit www.horizonteminerals.com or contact:

Horizonte Minerals plc
Jeremy Martin (CEO)
Simon Retter (CFO)
Patrick Chambers (Head of IR)

+44 (0) 203 356 2901

Peel Hunt LLP (Designated Advisor and Co-Broker)
Ross Allister
David McKeown

+44 (0)20 7418 8900

BMO (Joint Broker)
Thomas Cavalier
Pascal Lussier Duquette
Andrew Cameron

+44 (0) 20 7236 1010

Tavistock (financial PR)
Emily Moss
Catherine Drummond

+44 (0) 20 7920 3150


Except for statements of historical facts about the Company, certain information contained in this press release constitutes “forward-looking information” under Canadian securities laws. Forward-looking information includes, but is not limited to, the Company’s ability to complete the acquisition of equipment as described herein; statements regarding the potential of the Company’s current or future mining projects; the Company’s ability to complete a positive feasibility study for the second RKEF line at Araguaia on time, or at all; successful exploration and exploitation activities; the cost and timing of future exploration, production and development; the costs and delivery schedule of equipment to be purchased as described herein, the estimate of mineral resources and reserves and the Company’s ability to achieve its mineral resource growth objectives; achieving mineral resource and reserve estimates and achieving production in line with the Company’s potential production profile or not at all. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is planned”, “budget”, “expects”, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or statements that certain actions, events or results “could”, “could”, “would”, “could” or “will be taken”, “will occur” or “will be carried out”. Forward-looking information is based on management’s reasonable assumptions, estimates, analyzes and opinions made in light of its experience and perception of trends, current conditions and anticipated developments, as well as other factors that management believes to be relevant and reasonable for the circumstances on the date such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity , the Company’s performance or achievements may differ materially from those expressed or implied by such forward-looking information, including, but not limited to, risks relating to: the Company’s inability to complete the acquisition of the equipment contemplated herein, on time or not at all, the Company’s ability to complete a positive feasibility study regarding the implementation of a second RKEF line in Araguaia on schedule or not at all, exploration and mining risks, competition from competitors with greater capital; the Company’s lack of experience with development-stage mining operations; metal price fluctuations; uninsured risks; environmental and other regulatory requirements; exploration, mining and other permits; the Company’s future payment obligations; potential disputes regarding the Company’s title to and the size of its mining concessions; the Company’s dependence on its ability to obtain sufficient funding in the future; the Company’s dependence on its relationships with third parties; the Company’s joint ventures; the potential for currency fluctuations and political or economic instability in the countries in which the Company operates; exchange rate fluctuations; the Company’s ability to effectively manage its growth; the trading market for the ordinary shares of the Company; uncertainty about the Company’s plans to continue to develop its business and new projects; the Company’s dependence on key personnel; the possible conflicts of interest of the directors and officers of the Company, and various risks associated with the legal and regulatory framework in which the Company operates, as well as the risks identified and disclosed in the Company’s disclosure file available on the profile of the Company on SEDAR at www. sedar.com, including, without limitation, the Company’s Annual Information Form for the fiscal year ended December 31, 2021, the Araguaia Report and the Vermelho Report. Although the Company’s management has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause the results not to be those anticipated, estimated or forecast. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

[1] Represents the net cost to the business of power supply, fixed in USD, excluding transmission and other costs of 42.6 BRL/MWh (9.5 USD/MWh) using 4.5 USD:BRL. This compares to transmission and other costs of 36.2 BRL/MWh (10.3 USD/MWh) using 3.5 USD:BRL in the feasibility study.

This information is provided by RNS, the information service of the London Stock Exchange. RNS is authorized by the Financial Conduct Authority to act as a primary information provider in the UK. Terms and conditions relating to the use and distribution of this information may apply. For more information, please contact rns@lseg.com or visit www.rns.com.

THE SOURCE: Horizonte Minerals PLC

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