Centaurus postpones construction decision on US$288mn Brazil nickel project

Australian miner Centaurus Metals is postponing a construction decision on its US$288mn Jaguar nickel sulfide project in Brazil’s Pará state.

The company expects completion of the definitive feasibility study (DFS) in mid-2023, rather than early that year, as originally planned. The final investment decision is planned for 4Q23.

"The advancement of off-take discussions, in parallel with progress on the DFS, continue to confirm the clear advantages of producing nickel sulfate at Jaguar given the dynamic market conditions for [Electric Vehicles]-related commodities and the class-1 nickel that can be delivered with a very low-emission footprint," the company said in a statement.

"Recent advancements in the pressure oxidation (POX) process flowsheet, which offer the potential to further optimize capital and operating costs, will require the preparation of additional concentrate feed for the pilot plant work. As a result, the POX pilot plant test work is expected to commence in November 2022 to allow time for further drill core to be delivered to Australia from which additional concentrate feed can be prepared," it added.

The company is still targeting first production in 2025, subject to confirmation of delivery timelines for long-lead.

In addition, off-take discussions are continuing with Brazilian mining titan Vale in relation to production. Vale has the right to arm’s length market-based pricing under the original acquisition agreement, while Centaurus retains discretion over what nickel products will be produced at Jaguar.