Atlantic Nickel Bets $595 Million on Bahia Underground Mine

Brazil · Mining

A southern Bahia nickel mine that was running out of road has just been handed three more decades. By digging beneath its open pit, Atlantic Nickel is betting nearly $600 million that battery-grade metal is worth going deep for.

What is the Atlantic Nickel Santa Rita underground project?

The Rio Times, the Latin American financial news outlet, reports that the Atlantic Nickel Santa Rita project will move the mine from open-pit to underground operation at a cost of R$3.3 billion (about $595 million) through 2030. The mine, in the town of Itagiba in southern Bahia, is controlled by British private-equity firm Appian Capital, which acquired the asset in 2018 and restarted production the following year.

The plan, branded the “Underground Project,” was symbolically launched with a first blast to open the South access portal in late March, ahead of a final investment decision expected by August. Appian’s Brazil head, Milson Mundim, said the company typically begins early construction before locking in full financing to “de-risk” projects and protect the schedule. Once completed, it would be the only underground sulphide-nickel mine in Latin America.

Why go underground at all?

The economics turn on ore grade. The rock beneath the existing pit carries a higher nickel content than the surface ore, which means the company can run the same 6.6 million tonnes through its existing processing plant each year and pull out more metal for roughly the same energy and inputs. Mundim framed it simply: same plant, same costs, more contained nickel.

That higher yield is what stretches the asset’s life from about eight years to more than three decades. A 2024 pre-feasibility study indicated the mine could run for decades at around 30,000 tonnes of nickel equivalent a year, with low capital intensity and competitive operating costs. A definitive feasibility study is being finalised in parallel with the early underground work.

Where does this fit in Brazil’s mining story?

Brazil is the world’s third-largest nickel producer, and the metal sits at the centre of the energy-transition push that has drawn Washington and Brussels into competition over the country’s critical minerals. Sulphide nickel of the kind Santa Rita produces is a key input for electric-vehicle batteries, and the mine has built a steady export channel to Canada, China and Finland since 2019.

The project also brings an institutional stamp of approval. The World Bank’s private-sector arm, the International Finance Corporation, is set to partner on the development, the kind of backing that signals confidence in a long-life asset at a time when global investors are hunting for non-Chinese sources of battery metals.

What are the risks to the plan?

The biggest near-term hurdle is the final investment decision itself, due by August, and the definitive feasibility study that underpins it. Early construction has begun, but the full financing package has not yet closed, and underground mining carries higher technical and execution risk than open-pit work.

Nickel prices are the other variable. The metal has been volatile as a wave of low-cost Indonesian supply reshaped the global market, and a sustained price slump could squeeze even a low-cost operation. For now, Atlantic Nickel is betting that long-life, high-grade sulphide ore close to an established plant is the right hedge against that uncertainty.

What should investors and analysts watch next?

• The August decision: the final investment decision and the definitive feasibility study will confirm whether the full $595 million commitment proceeds.
• Financing close: watch how the rest of the funding package comes together, including the scale of the International Finance Corporation’s involvement.
• Nickel prices: the global oversupply from Indonesia is the key external swing factor for the project’s returns.
• Offtake direction: whether new output is steered toward Western battery supply chains or stays with existing buyers in China and beyond.
• Permitting and community ties: underground expansion will test Bahia’s regulatory and social frameworks over a multi-year build.

Frequently Asked Questions

What is the Atlantic Nickel Santa Rita project?

It is a R$3.3 billion (about $595 million) plan to move the Santa Rita nickel mine in southern Bahia from open-pit to underground operation, extending its life from roughly eight years to more than 30.

Who owns Atlantic Nickel?

The mine is controlled by Appian Capital, a British private-equity firm that acquired the asset in 2018 and restarted production in 2019. The World Bank‘s International Finance Corporation is set to partner on the underground expansion.

How much nickel will the mine produce?

A 2024 pre-feasibility study pointed to roughly 30,000 tonnes of nickel equivalent a year, processing about 6.6 million tonnes of ore annually at competitive operating costs.

Why does the underground ore matter?

The ore below the pit has a higher nickel grade, so the same processing volume yields more metal for similar energy and input costs. Sulphide nickel is a key raw material for electric-vehicle batteries.

When will the project be confirmed?

A final investment decision is expected by August 2026, alongside the definitive feasibility study, even though early construction has already begun.

Connected Coverage

The Santa Rita expansion adds to a fast-growing battery-metals base mapped in our guide to Brazil’s mining sector in 2026. It also lands as Europe courts the country’s supply, with the bloc reviewing four Brazilian critical-mineral projects spanning lithium, rare earths and nickel. For the broader stakes and bottlenecks, see why Brazil’s race for critical minerals faces both promise and delay.

Reported by Sofia Gabriela Martinez for The Rio Times — Latin American financial news. Filed May 20, 2026 — 16:00 BRT.