African Critical Minerals: US Company Lifezone Metals Raises $15 Million to Advance the Kabanga Nickel Project in Tanzania

After securing a $60 million loan from Taurus Mining Finance, Lifezone Metals launched a $15 million share offering

The Kabanga project is expected to produce 902,000 tons of nickel over 18 years, with a total investment of $942 million

Lifezone recently agreed to acquire BHP's shares in Kabanga, strengthening its control amid a weak nickel market

In a statement on November 10, Lifezone Metals said the company has launched a $15 million direct share offering to advance its Kabanga nickel mine project in Tanzania. A few weeks earlier, the company had secured a $60 million loan agreement with Taurus Mining Finance.

This US-based mining company plans to use the funds to support project development and prepare for a final investment decision (FID) by mid-2026. Lifezone stated that the proceeds from this share offering will be used for exploration work on the Kabanga project, but did not provide technical details.

According to a revised feasibility study released earlier this year, the Kabanga project is expected to produce approximately 902,000 tons of nickel over 18 years, along with by-products such as copper and cobalt. The company estimates the total investment requirement to be $942 million.

In July, Lifezone announced an agreement to acquire BHP's shares in the project, aiming to consolidate its control and accelerate project development. The company stated at the time: "This transaction will enable us to consolidate our position in one of the most promising nickel deposits in Africa."

This new round of financing comes amid a period of low global nickel prices. According to data from Trading Economics, due to continued oversupply in the market, coal prices have fallen by about 60% since 2022, and recent futures prices are approaching $15,000 per ton.

Despite the weak prices, Lifezone continues to advance the Kabanga project, viewing it as a strategic long-term asset for the energy transition. Before construction can begin, the company still needs to obtain multiple mining licenses from Tanzanian authorities. The Tanzanian government holds a 16% stake in the mine through a joint venture arrangement.

Sources: ecofinagency

Original: www.toutiao.com/article/1848724440980483/

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