TIDMHMI
RNS Number : 7132Z
Harvest Minerals Limited
22 September 2020
To view the announcement with the illustrative maps and diagrams
please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/7132Z_1-2020-9-22.pdf
Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector:
Mining
22 September 2020
Harvest Minerals Limited ('Harvest' or the 'Company')
Advances Expansion Planning to Increase Product Storage Capacity
at
Arapua Fertiliser Project by 300%
Harvest Minerals Limited, the AIM listed remineraliser producer,
is pleased to announce that it is in the final stage of the
expansion of the mining and product storage areas of its 100% owned
Arapua Fertiliser Project in Brazil ('Arapua'), as detailed in the
news release dated 14 April 2020. Additionally, it has signed a
Protocol of Intentions with the Government of Minas Gerais to
provide assistance on key initiatives related to Harvest's
operations and development plans.
Highlights:
-- Product storage capacity expanded by 300% to comprise a total
of 30,000 tonnes of product within a 6,000m2 covered storage
area
-- Mining area increased four-fold to 78.8km2 to provide greater
production flexibility according to demand and reduce operating
costs
-- Expansion work to be concluded by end of September 2020, ahead of main buying season
o Work on track to be completed ahead of time and 30% under
budget
-- Protocol of Intentions signed with state government
investment agency for assistance in areas such as business
matchmaking with local suppliers, permitting and licenses, tax
planning, and funding options, as it may be required
Brian McMaster, Chairman of Harvest, said: "With multi-decade
mineral resources and a high quality remineraliser product we have
strong confidence in the longevity of our business. As we foresee
sales increasing over time, we believe that the expansion of our
mining and storage capacities will enable us to meet the demand and
fill any eventual supply gap left by other fertiliser suppliers.
The expansion work is on track to be completed by end of September
2020, under budget and on time, ready for the beginning of the
buying season."
Further Information:
Over the past five months, Harvest carried out the expansions of
the product storage facility to 30,000 tonnes, which is a
three-fold increase in finished product storage capacity, and the
mining area (four fold increase), which will provide flexibility to
increase production, dry ore and provide additional run of mine at
times of peak demand for our product.
Work completed to date and currently in progress includes:
-- Expansion of the mining area
-- Increase of the product storage area
-- Addition of manoeuvre area for bigger trucks
-- Maintenance of access points
-- Improvements at the processing plant
-- Infrastructure improvements
The final cost of expansion is estimated at R$2.8 million (or
US$600,000), approximately 30% under budget, and funded internally
from Harvest's cash in hands plus operational cash flows. It is
expected that the works will be completed by end of September 2020,
before the start of the main buying season. Upon completion, work
is expected to be undertaken on a 2-3 shifts production scale.
Expansion of Product Storage Facility
The second product storage facility, which has twice the
capacity of the existing facility, is located on the west side of
the processing plant. The frame, fabric and conveyors have all
being fabricated locally by the same manufacturers who constructed
the original facility.
The expanded product storage facility will increase the
Company's processing and loading flexibility as it can process and
store product on one side, whilst loading from the other side. It
also has the advantage of isolating its production staff from the
delivery drivers as part of the Company's safety protocols in light
of the COVID-19 pandemic.
Expansion of the Mining Area (or Mining Stripping)
The mining area has been expanded four-fold to 78,894m2
including an access located on an upper level from the existing
facility so the plant can be gravity fed by conveyor from the new
feeding area. This should further reduce operating costs by
reducing trucking costs to and from the ROM pads to the mine and
plant. It also increased the capability of drying more material
without any operational cost.
Product Storage Facility (August 2020) - see PDF for image
Product Storage Facility and Manoeuvre Area (April 2020) - see
PDF for image
Expansion of the Mining Area (in m2) - see PDF for image
Protocol of Intentions Signed with Minas Gerais' Investment
Agency
A Protocol of Intentions has been signed by Harvest and the
government of Minas Gerais, through the Institute for Integrated
Development of Minas Gerais ('INDI'), an organisation connected to
the State Secretariat for Economic Development ('Sede').
The Protocol of Intentions signed by Harvest and INDI will be
instrumental to the execution of Harvest's plans to expand its
mining and storage capacities. The partnership with INDI will cover
areas such as business matchmaking with local suppliers, permitting
and licenses, tax planning, and funding options, as it may be
required.
INDI is the investment and trade promotion agency of Minas
Gerais, dedicated to attract and assist companies that want to
establish or expand operations throughout all phases of project
development, which include, and is not limited to,
investment-related intelligence and business matchmaking with local
suppliers, fast-tracking of permits and other required licenses,
securing financing with local development agencies, tax incentives
negotiations, and so forth. Such assistance is free of charge to
Harvest as the planned investments are meant to bring economic and
social benefits to the municipality where Harvest operates. In its
51 years of existence, INDI has assisted over 4,000 companies
seeking to implement or expand their business in Minas Gerais.
**ENDS**
For further information, please visit www.harvestminerals.net or
contact:
Harvest Minerals Limited Brian McMaster Tel: +44 (0) 203
(Chairman) 940 6625
Dr Mark Heyhoe
(COO)
Strand Hanson Limited James Spinney Tel: +44 (0) 20
Nominated & Financial Ritchie Balmer 7409 3494
Adviser Jack Botros
Shard Capital Partners Damon Heath Tel: +44 (0) 20 7186
Broker 9900
St Brides Partners Ltd Charlotte Page Tel: +44 (0) 20 7236
Financial PR Beth Melluish 117
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