Horizonte Minerals, a London-based nickel development company, has announced its subsidiary Araguaia Niguel Metais (ANM) will purchase new and unused ferronickel processing equipment from Compania Brasileira de Aluminio, controlled by Votorantim, a financial investment holding company in Latin America.

The company said the processing equipment includes key components of a conventional rotary kiln electric furnace plant and will be utilised at Horizonte'sv Araguaia ferronickel project in Brazil.

The processing equipment will cost US$60 million in total, depending on Horizonte Minerals achieving its future milestones.

Jeremy Martin, Horizonte's chief executive officer, described the acquisition of ANM as "a compelling opportunity" to fast-track the development of the rotary kiln electric furnace plant at Araguaia" and reach the capacity goal of 28,000 tonnes of nickel per year.

"We expect to be able to realise significant savings on our planned development costs given the low-cost acquisition of this high-quality equipment relative to the original purchase cost of approximately US$60 million," Martin explained.

"With a strong outlook for the nickel price underpinned by growing stainless steel and EV battery demand driven by the clean energy transition and limited new supply with comparable credentials to Araguaia, Horizonte is well placed to capitalise on the significant emerging nickel market deficit."