A second tranche of investment from BHP of US$50 million and the right for BHP to make further investments have been agreed subject to Kabanga Nickel achieving certain agreed milestones.
Kabanga boasts the largest development-ready nickel sulphide deposit in the world, with in-situ nickel equivalent resources estimated at 1.86 million tonnes and an in-situ nickel equivalent grade of 3.44%.
The project will produce battery-grade metal without smelting within Tanzania. The Government of Tanzania has a 16% interest in the project through local partnership entity, Tembo Nickel Corporation.
The investment will be used to accelerate the development of the project, including an enhanced metallurgical drilling programme to an updated definitive feasibility study, and to support construction plans for the hydromet refinery.
These studies are expected to be completed by the end of 2022, with first production targeted for 2025, ramping up toward 40,000 tonnes of nickel, 6,000 tonnes of copper and 3,000 tonnes of cobalt, for a life-of-mine of over thirty years.
BHP has also invested US$10 million into Lifezone Limited to advance the roll-out of its patented hydrometallurgical technologies, to support Class 1 battery grade nickel, copper and cobalt production at the project.
"BHP's investment reflects the project's strong ESG credentials and its role in improving environmental performance throughout the nickel value chain," Kabanga Nickel CEO Chris Showalter said. "Through development of Kabanga and Lifezone hydromet, Tanzania will have a growing role in the supply of the battery metals needed to move to a global low carbon economy."
