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Orion CMC is Lifezone Metals’ preferred partner for Tanzania nickel project
Lifezone estimates the Kabanga project will cost about $940 million and produce about 350,000 tonnes of nickel concentrate annually, with a final investment decision planned for early next year.
Lifezone Metals has selected US government-backed consortium Orion CMC as its preferred partner to help develop Tanzania’s Kabanga nickel project, according to Mining.com. The company says the process was competitive and managed by Standard Chartered, but no transaction has been formally announced and the proposed investment size was not disclosed.
Lifezone CEO Chris Showalter said on an earnings call last week that it picked a preferred equity partner from multiple bidders to support a strategic stake in Kabanga. Discussions are described as being in the final phase, and Showalter characterized the process as very competitive, Mining.com reported.
The Kabanga project is described as one of the world’s largest high-grade nickel sulphide deposits. Lifezone estimates it would cost about $940 million to build and produce roughly 350,000 tonnes of nickel concentrate annually, along with copper and cobalt, while a planned second-phase refinery would make nickel sulphate.
Lifezone also appointed Société Générale to arrange project debt and expects to make a final investment decision early next year after negotiations with the Tanzanian government took longer than expected. Tanzania holds a 16% stake in the project, and Orion CMC’s other widely reported deal involves a proposed 40% stake in Glencore-linked copper-cobalt interests in the Democratic Republic of Congo, which has not yet closed.
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