22 Jul Brazilian Nickel PLC Q2 2021 Update
Brazilian Nickel PLC (“BRN” or the “Company”), the privately held UK company developing its nickel laterite heap leach project in Brazil, is pleased to provide an update on its operations at the Piauí Nickel Project (the “PNP” or the “Project”), for the quarter ended 30 June 2021 (the “Quarter”).
PNP (Full Scale)
- The PNP Bankable Feasibility Study (“BFS”) engineering work by SNC Lavalin (“SNCL”) is now over 50% complete with the issue of the full BFS on track for Q1 2022.
- Full tender documentation for the Full Scale acid plant progressed during June, with issue anticipated in July.
PNP1000
- Construction progress of the PNP1000 Project has reached almost 30% and costs remain in line with budget with first nickel targeted for May 2022.
- Key achievements in the Quarter included preliminary confirmation of the required ore grades from the grade control drilling campaign, completion of concrete works for, and delivery of, the sulphuric acid tanks, completion of pressure filter fabrication and commencement of ion exchange resin shipping.
- PNP1000 infrastructure construction continues well, both at the site and at the camp, with the new accommodation block completed in May.
- A multidisciplinary construction team was formed including both direct employees and specialised contractors.
- A marketing plan for both the PNP1000 and Full Scale projects has been developed and will be implemented in Q3, targeting both product offtake and financial partnership towards full scale financing.
Environment, Social and Governance
- Excellent progress continues to be made with regards to improving the health and safety culture, with no major incidents reported in the Quarter. There have now been over 500,000 hours worked at the project site with no lost time injuries.
- An Independent review of the full Health, Safety, Environment & Communities Management System was undertaken, and improvements are being made.
- Over the Quarter, 15 new employees were hired with the number of full-time employees standing at 85 by Quarter end
- 85% of the total employees are local (being from the immediate vicinity of the project), 2% are regional and 13% are from the rest of Brazil
- 35% of PNM employees are female
- At the end of the Quarter Brazilian Nickel had no positive Covid-19 cases and no employees were in isolation.
- Waste management programmes continue with fresh food waste being collected daily and being donated to the local community and employees to feed their livestock.
- Access road dust control has been enhanced during the Quarter to improve conditions for the communities and households close to the road.
- Brazilian Nickel donated 200 “basic food and hygiene baskets” in the Quarter to support local families in need during the Covid-19 Pandemic.
- There was also a short but successful camp visit by the Piaui State Governor, along with his Finance Secretariat, Federal Deputy, and the Mayors of Capitão Gervásio and São João do Piauí. The visit strengthened the partnership between PNM and the Piauí state and will result in further support for Brazilian Nickel in the future.
Mike Oxley, Chief Executive Officer, said: “We kicked off the year with a positive first quarter where we commenced the BFS for the PNP, received the Installation Licence for the PNP1000 Project and proudly partnered with Paradigm for Parity to Achieve Gender Parity by 2030. This theme continued into the second quarter of the year where we made significant progress across all our business areas.
“The simultaneous progress of the PNP1000 and the BFS for the PNP, both on track and on budget, fills us with great confidence, and I would like to take this opportunity to thank our incredibly dedicated teams implementing the progress both on site and in our offices.
“With sustainability at the heart of everything we do, I am pleased to report that we are continuing our support for the local community, especially during Covid-19. I am proud to share that 85% of the total Project staff are local, additionally, as we aim to achieve gender parity by 2030, we are also proud to share that 35% of Project employees are female. We have also continued to strengthen our relationships with local authorities and look forward to their ongoing support.
“The fundamentals for both nickel and cobalt remained strong over the quarter, with the nickel price closing June 2021 at $18,450 per tonne, a 15% increase from the Q1 close. June’s nickel price increase represented the fourth consecutive month in which it has risen. The increase in demand and decrease in supply for these critical minerals means that these trends should continue in the long run.
“This Quarter has been extremely productive and updates such as this are something the Company will look to implement on a quarterly basis. We look forward to updating stakeholders with our progress.”
About Brazilian Nickel PLC
BRN is a privately held UK company established in May 2013 to develop nickel laterite heap leach projects worldwide, beginning with its flagship Project in Brazil. The BRN team are all highly experienced mining industry professionals with extensive experience in Latin America and worldwide. The team has been developing and commercialising the heap leaching of nickel laterites for over 20 years with a view to building a world class nickel and cobalt producing company.
BRN aims to provide long-term benefits through continuous improvements in health, safety and environmental performance, sharing the benefits of our activities with the communities within which we operate. BRN will achieve this by targeting zero harm to our employees, leaving a positive legacy in the community, conserving and where possible enhancing the natural environment, respecting and protecting the rights of employees and host communities, while doing business responsibly and transparently.
About the Piauí Nickel Project
The Piauí Nickel Project is an advanced-staged Battery Metals project with a JORC resource of 72 million tonnes at 1.0% Ni and 0.05% Co, with 73% of the resource in the JORC Measured category. All metallurgical test work in support of a BFS is complete and the key environmental permits (Licenças Previas) have been awarded. The project envisages near-term production of nickel hydroxide product and a cobalt hydroxide product to supply the surge in demand for these metals in, among others, electric vehicle batteries. The small scale PNP 1000 project will quick-start operations by expanding the existing demonstration plant at the site, and will allow BRN to benefit from today’s increasingly strong nickel prices.
For more information please visit the company website at www.braziliannickel.com, as well as following the company on Twitter, LinkedIn and YouTube.
Contact: [email protected]
Blytheweigh PR – Tim Blythe / Megan Ray
Tel: +44 (0) 20 7138 320