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BHP, the world's largest mining company, will invest $90mn into private firm Kabanga Nickel to accelerate the development of the Kabanga nickel project in Tanzania.
Kabanga Nickel announced an initial $40mn investment by BHP, equivalent to an 8.9pc equity stake in Kabanga Nickel once approvals and conditions are met. Once invested and on conversion, the second tranche of $50mn will further increase BHP's equity stake in Kabanga Nickel to 17.8pc.
On satisfaction of additional conditions, including achievement of certain agreed milestones, BHP will secure the right to make a further investment in Kabanga Nickel.
BHP will also invest $10mn into green technology firm Lifezone to advance the progress of its patented hydrometallurgical (hydromet) technologies, which are more cost-efficient than smelting, have a significantly lower environmental impact and will ensure that finished Class 1 battery-grade nickel, copper and cobalt are produced in Tanzania.
The Lifezone investment allows for new patent applications, as well as increased research and development capability. Lifezone presently has patents granted in more than 150 countries.
BHP's investment in the Kabanga nickel project will accelerate the mine's development, including an improved metallurgical drilling programme to enable an update of its definitive feasibility study and support the construction plans for the hydromet refinery. These studies are expected to be completed by the end of 2022.
The current project development timeline anticipates first production in 2025. Output will eventually be scaled up to target minimum production of 40,000 t/yr of nickel, 6,000 t/yr of copper and 3 000 t/yr of cobalt.
ArgusMetals
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