Piauí, Brazil / Nickel and cobalt
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The project is an open-pit nickel-cobalt mining operation located in the state of Piauí, in north-eastern Brazil.
Development
Nickel and cobalt
Brazilian Nickel
Brazil
Royalty rate and type
1.60%
Balance sheet classification
Royalty financial instrument
Piauí is a low cost project located in established mining jurisdiction. High purity nickel and cobalt hydroxide products to be produced from Piauí are expected to be used for lithium ion batteries, one of the key end markets for which is electric vehicles.
The Group has a royalty over the Piauí nickel project in Brazil owned by Brazilian Nickel Ltd. Ecora contributed an initial investment of $2.0m for a 1.25% GRR on the project in 2017 and increased this to 1.60% in 2023 through investing a further $7.5m. Ecora has, at its election, the right to increase this investment by a further $62.5m for a total gross royalty of 4.25% upon the satisfaction of certain milestones.
During 2025, the team at Brazilian Nickel continued to advance the Piauí nickel project. The majority of the work was in the field of pre-construction development work, community relations and construction financing. Brazilian Nickel also announced a number of non-binding agreements to supply nickel and cobalt in mixed hydroxide precipiate (MHP) to European and US-based refiners. Brazilian Nickel remains in discussions with potential financing partners with a final investment decision to proceed with construction of the Piauí project, at which point Ecora will have the right, but not the obligation, to invest a further $62.5m to acquire an incremental 2.65% Gross Revenue royalty.