Australia-listed Centaurus Metals has announced the results of a feasibility study for the Jaguar nickel sulphide project in northern Brazil, highlighting the strong economics from an initial concentrate-only project delivering a long-life production profile at first quartile operating costs.
The study considers openpit nickel sulphide ore over an initial 18-year mine life, delivering nickel sulphide feed to a 3.4-million tonne-a-year conventional nickel flotation plant to produce about 18 700 t/y of recovered nickel metal at a C1 operating cost of $2.30/lb and an all-in sustaining cost of $3.47/lb.
To build a mine, Centaurus estimates a capital investment of $371-million, with a payback of 2.7 years from first nickel concentrate production.
The study yielded a net present value of $663-million (about A$997-billion) and an internal rate of return of 31%.
MD Darren Gordon pointed out that a key attribute of the robust project economics was the first-quartile C1 operating costs and associated free cash flow over an initial 18-year mine life.
The low cash cost estimate is driven by low power costs, the size and quality of the nickel sulphide deposit supporting the scale of the operations and tax incentives.
“We have a high degree of confidence that Jaguar will be financially viable in any future nickel price environment and, importantly, will always be able to compete on cost with the growing supply of nickel from laterite sources out of Indonesia. Importantly, it will do so with a significantly lower carbon footprint due to its use of 100% renewable-sourced power for the project in Brazil,” Gordon said.
Based on the current environmental approvals and development timeline, Centaurus is targeting a final investment decision for the second quarter of 2025, with first production set for the second half of 2027.
The company has received strong interest in the project from a range of parties, including electric vehicle battery supply chain participants seeking to diversify their supply base and limit reliance on nickel supply from Indonesia.
With the DFS completed, Centaurus will formally start a strategic partnering process in conjunction with its financial adviser, Standard Chartered Bank.
“The compelling economics and forecast financial returns outlined in the study confirm Jaguar’s outstanding fundamentals and our long-standing belief that we have one of the world’s best new nickel sulphide projects, both from an economic and sustainability perspective.
“The study shows that Jaguar has a clear pathway to development, forming the cornerstone of our strategy to build a Brazilian strategic minerals business to benefit our shareholders, our people and the communities where we operate,” commented Gordon.
He also noted that the development of Jaguar would provide many new job opportunities.
“With a peak construction workforce of over 1 200 people, 490 full-time operational personnel and approximately 630 mining contractor employees, Jaguar will not only provide direct employment opportunities but will also stimulate the local economy through the creation of both direct and indirect employment and business opportunities,” he said.