BHP-backed Tanzania nickel miner in talks for offtake contracts
Lifezone Metals CEO Chris Showater
As a magazine-and-online subscriber to Creamer Media's Engineering News & Mining Weekly, you are entitled to one free research
report of your choice. You would have received a promotional code at the time of your subscription. Have this code ready and click
At the time of check-out, please enter your promotional code to download your free report.
Email firstname.lastname@example.org if you have forgotten your promotional code.
If you have previously accessed your free report, you can purchase additional Research Reports by clicking on the “Buy Report” button on this page.
The most cost-effective way to access all our Research Reports is by subscribing to Creamer Media's Research Channel Africa - you can upgrade your subscription now at this link.
The most cost-effective way to access all our Research Reports is by subscribing to Creamer Media's Research Channel Africa -
you can upgrade your subscription now at this link.
For a full list of Research Channel Africa benefits, click here
If you are not a subscriber, you can either buy the individual research report by clicking on the ‘Buy Report’ button, or you can
subscribe and, not only gain access to your one free report, but also enjoy all other subscriber benefits, including 1) an electronic archive of back issues
of the weekly news magazine; 2) access to an industrial and mining projects browser; 3) access to a database of published articles; and 4) the ability to
save articles for future reference.
At the time of your subscription, Creamer Media’s subscriptions department will be in contact with you to ensure that you receive a copy of your preferred Research Report. The most cost-effective way to access all our Research Reports is by subscribing to Creamer Media's Research Channel Africa - you can upgrade your subscription now at this link.
If you are a Creamer Media subscriber, click here to log in.
NAIROB – BHP Group-backed Lifezone Metals, which is developing a nickel mine in Tanzania, is negotiating supply deals with several electric vehicle manufacturers and battery makers as the race for energy transition metals intensifies, its CEO said.
The process run by RBC Capital Markets to sell yet-to-be-produced metal from Lifezone's Kabanga Nickel project has attracted strong interest from EV and battery companies, some of which have been to the mine site, CEO Chris Showalter said.
He declined to provide names, and said no agreements had yet been reached.
Lifezone Metals, which plans to list in New York this year via a blank-check acquisition deal that values the firm at around $1 billion, owns the Kabanga nickel and cobalt mine and refinery in north-west Tanzania.
BHP currently holds a minority stake in Kabanga and has an option to raise its interest in the mine to 51% and subsequently become its operator, Showalter said.
The global miner is pivoting back to Africa after exiting the continent in 2015 when it spun off South32. The Tanzanian government also holds a minority stake in Kabanga.
Via the deals currently under discussion, Lifezone could sell its share of output, equivalent to 40% of the metal produced at the facility, to help raise the capital it requires for the mine's development, Showalter said.
"Primarily what we are looking for is a prepayment structure," Showalter told Reuters. "In our view this would replace the more traditional project finance portion of the project funding."
EVs and battery manufacturers wanting to secure supplies from the mine could have to compete for offtake rights, Showalter, a former investment banker, said.
Nickel, key to growth in electric vehicles, is used in lithium-ion batteries, and helps vehicle manufactures to use less cobalt.
Indonesia currently accounts for around 40% of the world's nickel supply, with much of it controlled by Chinese companies.
With BHP's backing, there is potential to expand on plans to produce about 60,000 tons of refined nickel from initial expectations of about 40,000 tons, Showalter said.
Mining is expected to start toward end of 2026.