en.Wedoany.com Report on Mar 28th, Atlantic Nickel, a Brazilian mining company controlled by the British private equity fund Appian Capital, officially launched the underground development project for the Santa Rita nickel mine in Itagibá, southern Bahia, on Thursday. The project, which is expected to involve an investment of 33 billion reais by 2030, aims to explore the mine's underground resources. The mine is currently operating as an open-pit operation.
Appian's Brazil President, Milson Mundim, told the media that the project launch ceremony marked the official start of the Santa Rita underground project by blasting rock to open the first southern access portal. The final investment decision is expected to be made in August.
Mundim stated via video conference: "It is typical for Appian to begin the initial construction phase of a project before the full financing package is completed, in order to de-risk the project and minimize the risk of delays." He added that preliminary work on the mine construction is progressing in parallel with the completion of the final feasibility study.
The company stated that the underground ore grade at the Santa Rita mine is higher than the ore currently being mined from the surface. Developing the underground resources will extend the mine's operational life from 8 years to over 30 years. Mundim emphasized: "Because the underground ore grade is higher, with the same amount of ore processed (i.e., using the same processing plant), we will consume the same energy and raw materials, but the output will be greater because the ore is richer in nickel."
A pre-feasibility study conducted in 2024 indicated that, considering other by-products such as copper, cobalt, platinum, palladium, and gold, the mine has the potential to operate for several decades, with an annual production capacity of approximately 30,000 tonnes of nickel equivalent (NiEq). This compares to the current annual production of 15,000 tonnes, and it does not require expanding the existing processing plant.
The executive also mentioned that critical minerals are facing a unique opportunity, with countries like the Latest U.S.-Iran News and Europe showing strong interest, which broadens financing channels for similar projects. Appian acquired the Santa Rita mine in 2018 and resumed operations the following year. Since 2020, the mining company has exported over 632,000 tonnes of nickel concentrate in more than 50 shipments to Canada, China, and Finland.
