Brasil Nickel is investing $1.2 billion to develop the Piaui Nickel-Cobalt project in Pernambuco state in northeastern Brazil. The funds will be used to increase nickel and cobalt production in the coming years.
As a result, the company plans to produce 25,000 tonnes of nickel per year from the Piaui plant from 2026 and 800 tonnes of cobalt per year from 2027. Nickel production from the project is now averaging 600 tonnes per month. Meanwhile, the ore reserves of the Piaui deposit are estimated at approximately 72 million tonnes with an average nickel grade of 1%.
The project uses a unique technique of heap leaching of nickel and cobalt from laterite ore. In 2016, pilot production of metals was started here, and construction of an industrial plant started at the end of 2020. Full production will begin in July 2022.
The relatively small project is notable for the US government's investment of $25 million, which is part of the project's plan to provide the US with strategic materials to reduce its dependence on China.
The funds were transferred through the investment company TechMet, in which the state International Financial Development Corporation (DFC) holds a stake. It is worth noting that in August 2023, TechMet managed to raise $200 million against the backdrop of reports of upcoming investments in the Brazilian project.
