Horizonte Minerals Plc

Araguaia Project Operational Update - Seite 2

Value Engineering Completion

For the past eight months, the Araguaia project team, working alongside a number of leading global engineering groups, have been focused on advancing the level of engineering from feasibility stage to becoming implementation ready. The value engineering work is now complete, resulting in a number of positive outcomes.

The objectives of the value engineering process have been to:

• Improve the level of engineering definition;
• Develop and execute the procurement strategy (linked with Export Credit Agency (“ECA”) finance and associated vendors);
• Establish a detailed Project Execution Plan;
• Initiate Engineering, Procurement and Construction Management (“EPCM”) vendor selection; and
• Develop an Operational Readiness Plan. 

Key outcomes of the work include:

• Feasibility Study design philosophy and process flow sheet remain mostly unchanged, but with the addition of a number of improvements to enhance operational performance;
• Key equipment packages optimized and final negotiations underway for long-lead items;
• Level of engineering definition has been significantly advanced to allow fast track to start of implementation;
• Improved furnace and refinery technologies selected along with furnace control systems to improve reliability, productivity and ensure the right on site support during construction and ramp up;
• Updated market proposals for key opex inputs including power, logistics, labour and plant consumables; and
• Capex and opex remain in line with Feasibility Study values following comprehensive review.

Environmental and Social

Horizonte’s environmental and social workstreams are critical to the operational readiness of the Project. In preparation for the development phase of the Project, the environmental and social team has begun to implement multiple programmes in line with Brazilian permits, Equator Principles and IFC Performance Standards.

Social programmes commenced or advanced in 2020 include:

• Local Supplier Development Programme with respect to equipment and services;
• Mining and Environmental Education Programme for communities and key stakeholders;
• Impact on Local Services Plan; and
• Worker’s Accommodation Plan.

All environmental programmes relating to Brazilian permits have continued, and in addition, Environmental Resources Management (“ERM”) consultancy group were commissioned to conduct new IFC-related studies, including: