Centaurus' Brazil nickel project set to tap proceeds from pro-climate platform

Australia’s Centaurus Metals said its Jaguar nickel project in Brazil’s Pará state has been selected to be part of a pro-climate platform.

"Centaurus Metals is pleased to advise that the company’s Jaguar nickel sulfide project in northern Brazil has been selected as one of the projects to be taken on by the Brazil Climate and Ecological Transformation Investment Platform (BIP), which offers the opportunity to access a capital pool of more than US$10bn," the company said in a statement.

"The company sees this as a positive opportunity to connect with different institutions, both domestically and abroad, as it works to secure the funds required to develop and operate Jaguar," it added.

Last year, Brazil announced the creation of BIP, which is managed by federal development bank BNDES, during the UN climate summit COP29 in Baku, Azerbaijan.

The platform aims to bridge the gap between financing sources and projects aligned with decarbonization public policies and already has US$10.8bn in capital to be mobilized, according to BNDES.

The projects are grouped into three priority areas: nature-based solutions, industry and energy transition. BNDES will verify the alignment of the proposals with pre-established criteria, helping to attract financing aligned with initiatives such as the Ecological Transformation Plan, the Climate Plan, the New Industry Brazil Plan and the National Energy Transition Plan.

BIP brings together Brazil’s ministries of finance; environment and climate change; development, industry, commerce and services; and mines and energy, along with BNDES and international partners such as Bloomberg Philanthropies, the Glasgow Financial Alliance for Net Zero (Gfanz) and the Green Climate Fund (GCF).

Along with supporting projects connected to the energy transition, the platform also aims to stimulate the diversification of Brazil's mining sector, which is highly concentrated in iron ore.

"There has been a growing interest from investors in Brazil's strategic minerals segment, particularly lithium, nickel and rare earth elements. These minerals are critical for the development of technologies such as electric vehicles, batteries and renewable energy systems, which has led to increased global demand. As Brazil possesses substantial reserves of lithium and nickel, the country is seen as a potential key player in the global supply chain for these critical resources," Beatriz Ghosn, counsel in public law and regulation at law firm Lefosse, told BNamericas.

Jaguar

Centaurus acquired the Jaguar project from Brazilian mining giant Vale in 2020. A July feasibility study outlines pre-production development capital of US$371mn.

The final investment and financing decisions are expected for Q2.

Jaguar's 3.5Mt/y nickel flotation plant is expected to produce 18,700t/y of recovered nickel for at least 18 years.