US to support Brazilian Nickel with US$550mn financing facility

Brazilian Nickel, the owner of the Piauí Nickel project, received a letter of interest involving a US$550mn loan facility from the US International Development Finance Corporation (DFC).

The amount represents almost 40% of the project’s overall financing package.

“Brazilian Nickel’s Piauí Nickel project represents an opportunity to advance critical mineral development in Brazil, diversify critical supply chains, and foster economic growth in the region. DFC is committed to advancing the global energy transition by supporting world-class projects that drive economic development and growth, while advancing US strategic interests in the region,” Danielle Montgomery, DFC’s acting vice president of infrastructure and critical minerals, said in a statement.

The project is under development in Piauí state, and, during the first 10 years of operation, produces 27,000t/y nickel and 900t/y cobalt.

“We are grateful for the incredible support we have received from DFC throughout this process, and we are excited to continue our collaboration to convert the [letter of interest] into a committed financing facility in early 2025. It is a clear indication of the potential value of this project to Brazil, the US, and the world,” Brazil Nickel CEO Mark Travers said.

US institutions show increasing interest in critical minerals in Brazil.

In November, Canadian-listed firm Lithium Ionic received a non-binding letter of interest from the Export-Import Bank of the United States involving up to US$266mnin debt financing for a project in Minas Gerais.