Brazil-based nickel producer, Atlantic Nickel plans to extend capacity from the current annual production of 20,000-25,000mt nickel to 40,000-45,000/mt, according to the preliminary economic assessment released by the company on Monday.
The PEA was conducted for Santa Rita nickel mine in Brazil which has the potential capacity to make the company the largest sustainable nickel sulphide producers in the world. The execution of the plan will be completed in 10 phases. Production will however begin in 2026 including infrastructure capital and underground project and will be ramped up until full production is achieved at 6.2mn mt a year.
Total capital linked with the underground expansion would be around $1.3bn over the next 34-year combined operations, with only $355mn of the total being spent during the first five years of underground development commencing in 2026. The company said that the extension is partially self-funding with cash flows being generated from the open-pit mining operation.