Key Minerals in Africa: Media Report - China-US Competition Over African Minerals: The Kabanga Nickel Project in Tanzania Attracts Joint Attention from American and Chinese Enterprises
¬ It has been reported that Chinese enterprises are currently negotiating participation in the Kabanga Nickel Project in Tanzania
¬ 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 for control over Africa’s critical minerals
Less than a year after BHP exited the Kabanga nickel project in Tanzania, new investors have already rushed in, preparing to take its place.
Among them is a Chinese resources company. A Reuters report dated June 5 revealed the company's interest, indicating that the 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 U.S.-listed company. This transaction increased Lifezone Metals’ ownership to 84%, while the Tanzanian government retains the remaining 16% stake.
Since then, Lifezone has remained open to welcoming new strategic partners. In late April, the company stated it had received indications of interest from several potential investors, though their identities were not disclosed. According to sources cited by Reuters, Lygend is currently in discussions with Lifezone regarding potential investment, although the progress of these negotiations remains unclear.
Financing Needs Align Perfectly with Strategic Goals
As one of the world’s leading nickel industry players, Chinese enterprises’ entry into the Kabanga region aims to diversify their business and overcome 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 necessary funding before construction begins.
The Kabanga mine is among the most significant undeveloped nickel deposits in Africa. Project estimates suggest the mine could produce around 902,000 metric tons of nickel over an 18-year mining period, along with byproducts of copper and cobalt.
Lifezone has already begun seeking support from the U.S. International Development Finance Corporation (DfC) to fund this project. The addition of new investors could further accelerate progress—but how the eventual partnership involving interests from both China and the U.S. will 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 companies seek stable mineral supplies for energy transition, competition for critical minerals continues to intensify.
Tanzania has become one of the key battlegrounds in this contest. Last year, a U.S.-based firm, General Innovation Capital Partners, competed with another Chinese resources company for control of the Ngwala rare earth project—a significant strategic mining asset in the country.
The coming months are crucial for Kabanga Company. 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 specific implementation of the financing plan—and whether Chinese enterprises will participate—will further reveal the evolving global dynamics of the race for Africa’s critical mineral resources.
Source: ecofinagency
Original article: toutiao.com/article/1867898737621004/
Disclaimer: This article represents the personal views of the author