Independent ESG assessment confirms Jaguar’s credentials as a world-leading, low emission nickel project
Centaurus Metals Ltd’s (ASX-CTM) 100%-owned Jaguar Nickel Sulphide Project in Brazil has been independently assessed as having the potential to be one of the world’s foremost nickel projects in terms of its carbon footprint, putting it in an excellent position to attract investment from leading ESG-focused investors and institutions.
The company recently commissioned a study by specialist metals and mining ESG research company, Skarn Associates, to study the emission levels forecast to be generated from the production of nickel sulphate at Jaguar. The Skarn assessment has been based on the operating parameters set out in the Jaguar Nickel Project Value Add Scoping Study.
The results of the study are compelling and demonstrate clearly that the Jaguar Project is expected to be class- leading in terms of its carbon footprint, reflecting its unique attributes as a high-grade nickel sulphide project powered largely by renewable energy from the local grid and producing a finished (value-add) nickel sulphate product on site which can be used directly in the production of lithium-ion batteries.
When in operation, the E1 emissions for the production of nickel sulphate on site at Jaguar are expected to be extremely low at 4.69 tonnes of CO2/tonne of nickel equivalent, which is lower than 97% of existing global nickel production and demonstrates the investment quality of Jaguar from an emissions perspective as well a financial perspective.
The low emission levels are a function of the relatively high-grade nickel coming from open pit mining sources and, importantly, the fact that 80% of grid power in Brazil stems from renewable sources. There is an expectation that, once in operation, Jaguar’s power requirements will be met from 100% renewable sources. This has not yet been considered in the emission assessment by Skarn Associates.
Managing Director, Darren Gordon, said despite this, the assessed emission levels are already 85% lower than the industry average (production weighted) of 33 tonnes of CO2/tonne of nickel equivalent.
“Jaguar is one of the best undeveloped nickel sulphide projects globally. The resource base is large and the Value-Add (Nickel Sulphate) Scoping Study demonstrates that Jaguar is set to produce over 20,000 tonnes per annum of nickel-in-sulphate over an initial mine life of 13 years,” Mr Gordon said.
“Further drilling is expected to allow the Company to expand the Resource, which could pave the way for the annual production profile to be lifted or mine life to be extended.
“The capital intensity of the proposed development at Jaguar is low with very strong economics, especially considered against the backdrop of the current rising nickel price environment. The Scoping Study demonstrated that, at a conservative nickel price of US$7.50/lb and a sulphate premium of only US$0.50/lb, annual average cash flows are ~A$252 million, the NPV8 of the Project is ~A$1.1 billion with an IRR of ~52% and a payback of ~1.8 years.
“At a nickel price of US$9/lb (which is nearly the current spot price), annual average cash-flows rise to over ~A$335 million with the post-tax NPV8 of the Project lifting to ~A$1.6 billion with an IRR of ~70%.
“We expected that the Jaguar Project would have a low carbon footprint given the relatively high-grade nature of the planned mill feed and the fact that 80% of the power in Brazil is generated from renewable sources (principally hydro and solar). Pleasingly, the study work undertaken by Skarn Associates has now confirmed this. At 4.69 tonnes of CO2/tonne of nickel equivalent, the Jaguar Project will be one of the lowest carbon emission projects in the nickel industry.
“To be able to produce a nickel sulphate product on site for ready use into the electrification of industry and have emissions assessed at these extremely low levels is a class-leading result and we look forward to the opportunity to develop such a high-quality project against the backdrop of a very low carbon footprint.”
For further information please visit: https://www.centaurus.com.au
