Brazilian Nickel is currently in negotiations to secure financing for its project in northeast Brazil’s Piauí state amidst a challenging market environment for the metal. Nickel prices have been under pressure due to the increase in production from new projects in Indonesia, raising concerns about the social and environmental standards of these operations.
Guilherme Jácome, the president of Piauí Níquel Metais, a subsidiary of Brazilian Nickel, discussed the company’s project and market outlook, as well as their ESG practices with BNamericas. Jácome revealed that they are in the final stages of securing investors to finance the project, having already obtained all necessary licenses for production to begin.
Despite the recent drop in nickel prices, Jácome expressed confidence in the project’s viability, stating that internal projections support its profitability. The market has been flooded with nickel from Indonesia, with questionable social and environmental practices leading to oversupply.
With the recent rise in nickel prices and potential restrictions on nickel trade from certain regions, such as Russia, the market seems to be reacting and evaluating stricter regulations. Jácome highlighted the importance of ESG certifications for mining companies and emphasized the need for industry-wide standards.
Looking ahead, Jácome stated that once financing is secured, the project aims to be operational within three years with a production capacity of 25,000 tons per year. The company is actively preparing for construction, with plans to engage thousands of workers during peak construction phases.
