Name of the Project
Kabanga nickel project.

Location
Ngara district of the Kagera region, western Tanzania.

Project Owner/s
Kabanga Nickel, a subsidiary of Lifezone Metals and BHP.

Project Description
Lifezone Metals believes that the project contains one of the world’s largest and highest-grade nickel sulphide deposits.

The project will be a cradle-to-gate mining operation, producing Class 1 nickel, cobalt and copper refined metals by adopting a hydrometallurgical processing technology that is more cost efficient than smelting, and has a significantly lower environmental impact.

The project, which has a life-of-mine of more than 30 years, aims to produce a minimum of 65 000 t/y of nickel equivalent, with further exploration upside potential.

Lifezone intends to use its proprietary hydrometallurgical process technology – Hydromet Technology – at the project, noting that it has the potential to be a more cost-efficient alternative to conventional smelting, with a significantly lower environmental impact.

A definitive feasibility study for the mine-to-metals project is due for completion in 2024.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Societe Generale is the project’s lead financial adviser.

Planned Start/End Date
First production is targeted for 2025.

Latest Developments
Lifezone Metals has closed a $60-million bridge loan facility with Taurus Mining Finance Fund No. 2, enabling its wholly owned subsidiary, Kabanga Nickel, to advance early works and infrastructure development.

The first tranche of $20-million was received on August 29, with future tranches contingent on achieving project milestones. The facility is expected to support ongoing capital expenditure and operating expenses over three-month intervals while accelerating the broader project finance process following the release of a robust feasibility study in July.

The bridge loan concludes the short-term financing phase, with Standard Chartered Bank advising on the facility and the broader strategic investment process.

Lifezone is in advanced discussions with several major counterparties and financial investors regarding potential long-term partnerships and equity investments. The company has received several nonbinding offers pertaining to possible transactions at project level.

The investment committee, supported by Standard Chartered, is evaluating strategic options, including potential change-of-control transactions, Lifezone has said.

“While discussions are ongoing, no agreements have been reached, and there is no assurance that the process will result in a transaction,” the firm has indicated.

The development of the Kabanga project remains on track, with funds from the Taurus facility earmarked for critical early works and infrastructure.

Key Contracts, Suppliers and Consultants
DRA Global (definitive feasibility study consulting engineer); and OreWin (lead mining consultant and qualified persons).

Contact Details for Project Information
Lifezone Metals, email info@lifezonemetals.com.