Key Minerals in Africa: The U.S.-China Competition for African Minerals — The Kabanga Nickel Project in Tanzania Draws Joint Attention from American and Chinese Enterprises
¬ According to reports, China’s Lygend Resources is currently in negotiations to participate in Tanzania’s Kabanga nickel project
¬ U.S.-based Lifezone Metals is seeking financing partners, with the final investment decision expected by mid-2026
¬ The project highlights the intensifying global competition among major powers over Africa’s critical mineral resources
Less than a year after BHP exited the Kabanga nickel project in Tanzania, new investors are already rushing in to take its place.
Among them is China’s mining conglomerate, Lygend Resources. A report by Reuters on June 5 revealed the company’s intentions, indicating that competition for Africa’s critical minerals is increasingly drawing attention from both Chinese and American enterprises—even within the same project.
BHP previously held a 17% stake in Kabanga and agreed in July 2025 to sell its shares to Lifezone Metals, a company listed in the United States. This transaction increased Lifezone Metals’ ownership to 84%, while the Tanzanian government retains the remaining 16% stake.
Since then, Lifezone has remained open to bringing in new strategic partners. In late April, the company stated it had received expressions of interest from several potential investors, though it did not disclose their identities. According to sources cited by Reuters, Lygend is currently in discussions with Lifezone regarding potential investment, although the progress of these talks remains unclear.
Financing Needs Align Perfectly with Strategic Goals
As one of the world’s leading nickel industry players, Lygend’s move into the Kabanga region aims to diversify its business and break through market limitations in Indonesia, the world’s largest nickel producer. Meanwhile, Lifezone’s primary motivation for seeking partners stems from financing needs: the company is preparing a project estimated to cost approximately $942 million and hopes to secure funding before construction begins.
The Kabanga mine is one of Africa’s most significant undeveloped nickel deposits. According to project estimates, the mine could produce around 902,000 tonnes of nickel over an 18-year operational period, along with by-products of copper and cobalt.
Lifezone has already begun seeking support from the U.S. International Development Finance Corporation (DfC) to fund the project. The entry of new investors could further accelerate progress—but how the complex relationship involving both U.S. and Chinese interests will ultimately be structured remains uncertain.
A New Front in the Battle for Critical Minerals
The development trajectory of the Kabanga region reflects a broader trend across Africa: as governments and enterprises seek stable supplies of minerals to support energy transition, competition over critical minerals continues to intensify.
Tanzania has become one of the key battlegrounds in this struggle. Last year, U.S.-based General Innovation Capital Partners competed with China’s Shenghe Resources for control of the Ngara rare earth project—another strategically significant mining asset in the country.
The coming months are crucial for Kabanga. Lifezone plans to make its final investment decision by mid-2026—a pivotal milestone that will lay the foundation for project development.
Before construction can begin, the company must also obtain a mining license from Tanzanian authorities. The specifics of the financing plan—and whether Lygend will join—will further reveal how the global landscape of competition over Africa’s critical mineral resources is evolving.
Source: ecofinagency
Original article: toutiao.com/article/1867443140383816/
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