Lifezone Metals secures full ownership of Tanzania’s Kabanga nickel project
Lifezone Metals has acquired the remaining 17% stake held by BHP Group in Kabanga Nickel Limited (KNL), taking full ownership of the company developing the Kabanga nickel project in northwestern Tanzania. The transaction is valued at up to $83 million, according to a regulatory filing by Lifezone.
With this acquisition, Lifezone now controls 100% of KNL, which holds an 84% stake in Tembo Nickel Corporation Limited (TNCL), the local entity overseeing project operations. The Government of Tanzania retains the remaining 16% of TNCL.
The Kabanga project, which is one of the most promising undeveloped nickel sulphide deposits globally, will now proceed under the sole direction of Lifezone. The company also gains full control over future nickel offtake agreements, as all previous arrangements with BHP have been cancelled.
Kabanga nickel project
A project update released by Lifezone estimates the cost to bring the mine into production at around $942 million, with overall life-of-mine expenditure expected to reach $2.49 billion. Once operational, the mine is projected to produce approximately 50,000 metric tons of nickel annually. Development and construction are expected to span six years, with a final investment decision targeted for 2026.
BHP’s initial commitment to the project in 2022 included an investment of up to $100 million, dependent on specific milestones. However, changing global nickel market conditions particularly the surge in production from Indonesia and declining prices have led BHP to re-evaluate its position. The company is currently reassessing its broader nickel strategy, having placed its Australian Nickel West operations on care and maintenance last year. A long-term decision on those assets is expected by early 2027.
Lifezone’s move consolidates its role in developing one of Africa’s key critical minerals projects, aligning with Tanzania’s ambitions to boost value addition and benefit more directly from its mineral resources. The Kabanga project is seen as strategically important for the global battery metals supply chain, especially amid growing demand for electric vehicles and renewable energy technologies.
