Piauí, Brazil / Nickel and cobalt
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The project is an open-pit nickel-cobalt mining operation located in the state of Piauí, in north-eastern Brazil.
Development
Nickel and cobalt
Brazilian Nickel
Brazil
Royalty rate and type
1.60%
Balance sheet classification
Royalty financial instrument
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
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
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.
Production of first nickel from the small scale PNP1000 plant commenced in June 2022. The learnings from the PNP1000 plant have fed into the detailed engineering studies and flow sheet optimisation that will further de-risk the project prior to construction. Ecora invested $7.5m in November 2023, increasing its royalty from 1.25% to 1.60%, with the proceeds primarily being used to finance the aforementioned workstreams.
On 9 December, Brazilian Nickel announced that it had received a letter of interest from the U.S. International Development Finance Corporation (“DFC”) that expressed DFC’s interest in providing the Piauí Nickel Project (“PNP”) with a loan facility of up to US$550 million, representing almost 40% of the PNP’s overall financing package.
The operator continues to progress detailed engineering studies, operational readiness preparations and construction financing workstreams. FID and commencement of construction are expected shortly after completion of these workstreams.