BHP has invested US$40 million into Kabanga Nickel Ltd. The money will be used to accelerate the development of the Kabanga Nickel Project in Tanzania, the world’s largest development-ready nickel sulfide deposit. In parallel, BHP has invested US$10 million into Lifezone Ltd to advance the roll-out of its patented hydrometallurgical (hydromet) technologies. Lifezone hydromet is more cost-efficient than smelting, has a significantly lower environmental impact, and will ensure that finished Class 1 battery grade nickel, copper, and cobalt will be produced in Tanzania.
- Kabanga is the largest development-ready nickel sulfide deposit in the world. Located in western Tanzania, it has contained in-situ nickel equivalent resources estimated at 1.86 million t and an in-situ nickel equivalent grade of 3.44%.
- Project timeline anticipates first production in 2025, targeting minimum annual nickel equivalent production of 65 000 t, with 30+ years life of mine and exploration upside potential.
- US$40 million investment from BHP, a world leading resources company, to accelerate development of the Kabanga Nickel Project to produce Class 1 battery-grade nickel, cobalt, and copper.
- Further US$10 million investment from BHP to progress Lifezone’s low-carbon hydrometallurgical processing technology which is more cost-efficient than smelting and has a significantly lower environmental impact.
- Future investment tranches in Kabanga Nickel have been agreed subject to certain conditions, including a second tranche of US$50 million and the right for BHP to make further investment subject to achieving certain agreed milestones.
- Full beneficiation of battery grade metals without smelting will be achieved in Tanzania. The Government of Tanzania has a 16% interest through local partnership entity, Tembo Nickel Corp, Kabanga Nickel Ltd (UK) holds the balance.
Chris Showalter, Kabanga Nickel CEO, comments:
“We are delighted to announce this partnership with BHP. It highlights the world-class nature of the Kabanga deposit and its importance in helping meet the crucial decarbonisation challenge facing the world today. BHP is the ideal partner for Kabanga Nickel, bringing significant advantages and expertise that will enable us to move ahead with the project. BHP’s investment reflects the project’s strong ESG credentials and its role in improving environmental performance throughout the nickel value chain. In addition, BHP’s funding support of Lifezone’s hydromet technology – the future of sustainable metals processing – will drive progress towards a greener world. 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.”
Read the article online at: https://www.globalminingreview.com/mining/10012022/bhp-invests-in-kabanga-nickel-and-lifezone/