Key points:
- Horizonte Minerals (HZM) just broke ground on its Araguaia nickel project.
- The miner’s prospects are pretty positive given the global demand for nickel.
- The company just released its third annual sustainability report. Is it a buy?
This week, Horizonte Minerals (LON: HZM) hit a critical milestone at its flagship Araguaia mine in Brazil as it began earthworks at the mine. The nickel miner revealed this after publishing its annual sustainability report, highlighting the progress made in reducing the impact of its projects.
Also read: The Best Nickel and Nickel Mining Stocks To Buy.
Some of the sustainable report highlights included the company’s prudent management of Covid-related work guidelines, which ensured that progress on the Araguaia mine was not adversely impacted. In addition, the company did not lose any of its employees to the coronavirus pandemic.
Horizonte also revealed that it had maintained its impressive record of no workplace fatalities in its mining operations after implementing fatality prevention measures and other safety measures at its two mining sites.
The miner has also complied 100% with all the relevant safety regulations, including implementing a baseline monitoring programme for the Araguaia project.
Other highlights of the sustainability report included the gender inclusivity measures taken by the company that has resulted in 30% of its Brazil workforce being female. Furthermore, 38% of its UK-based workforce are female.
Horizonte has also taken measures to employ the local workforce in Brazil, with 97% of its Brazil workforce being Brazilians, with 19% hailing from Pará State, and another 12% coming from other local host communities.
With the company’s sustainability efforts firing on all cylinders, investors will be happy to know that Horizonte just broke ground on the Araguaia project yesterday and expects to complete the Tier-1 nickel mining project in 24 months.
The miner has awarded contracts worth $204 million for long-lead items such as the smelting furnace, EPCM, and earthworks. The company says it has done a lot since the project was approved four months ago, evidenced by this week’s groundbreaking.
HZM shares have risen 7.57% in 2022 and could be headed higher in future given the Araguaia mine’s positive prospects. I would buy the shares as a long term investment in the nickel mining sector, given the rising global demand for nickel. However, this would be a long term investment since it will take at least two years for the Araguaia project to start operations.
*This is not investment advice. Always do your due diligence before making investment decisions.
Horizonte Minerals share price.
Horizonte Minerals' share price has risen 7.57% in 2022 and could be headed higher.