Piauí / Nickel and cobalt
View on mapThe project is an open-pit nickel-cobalt mining operation located in the state of Piauí, in north-eastern Brazil.
Producing
Nickel and cobalt
Brazilian Nickel (‘BRN’)
Brazil
Royalty rate and type
1.60%
Balance sheet classification
Royalty financial instrument
What we own
The Group has a royalty over the Piauí nickel project in Brazil owned by Brazilian Nickel PLC (‘BRN’), a private UK company. Ecora Resources contributed an initial investment of $2.0m for a 1.25% GRR on the project in 2017 and a further $7.5m in 2023, increasing its royalty by 0.35% to 1.60%. The Group has the right to acquire a further 2.65% royalty over the project for a consideration of $62.5m upon the satisfaction of certain developmental milestones - These funds would form part of the construction financing package
Why we own it
The Piauí project is a low-cost heap leaching nickel and cobalt project, expected to produce 27 ktpa of nickel and 1 ktpa of cobalt credit during the initial 10 years of operation. High purity nickel and cobalt hydroxide products to be produced are expected to be used for lithium ion batteries, one of the key end markets for which is electric vehicles.
Progress
Brazilian Nickel Limited continues to progress construction financing workstreams, including debt and equity funding. Detailed engineering activities are underway, and the Brazilian Nickel project team has been expanded to include a Chief Sustainability Officer with over 25 years’ experience, most recently at Vale Base Metals, and Chief People Officer with 17 years of experience, much of it in the mining sector.
In June 2022 production of first nickel from the small scale PNP1000 plant commenced and a bankable feasibility study was completed which confirmed the attractive project economics.
Key facts
4.25%
Size of our royalty should we invest a further $62.5m towards the construction of the full scale facility
$20m
Production of first nickel from the small scale PNP1000 plant commenced in June 2022. Once fully ramped up, this royalty could contribute between $17.5-22.5m
EVs
High purity and low carbon nickel and cobalt hydroxide products will be produced from Piauí for lithium ion batteries, electric vehicles, sustainable energy and the aerospace industry