Recently, British miner Kabanga Nickel (formerly LZ Nickel) signed a framework agreement with the Tanzanian government to develop the world's largest battery-grade nickel sulfide deposit in the northwest of the country.

As part of the transaction, the two parties established a joint venture company called Tembo Nickel Corp., which will mine, process and refine Type 1 nickel, which is a by-product of cobalt and copper.

Kabanga Nickel is the main owner of the new entity, holding 84% of the shares. Tanzania owns the remaining 16%, which is the government’s usual stake in all mining projects in the country. The two parties stated in the statement that the economic benefits of the Kabanga nickel mine project will be equally distributed by the two shareholders, the project was originally owned by Barrick Gold and Glencore.

Tanzania is the fourth largest gold producer in Africa. In recent years, it has sought higher income from its rich mineral resources by reforming the financial and regulatory systems of the mining sector. Barrick and Glencore lost the nickel project in 2018 when the government of President John Magufuli at the time, along with 10 others, revoked their retention permits.

Earlier, Dar es Salaam suspended new mining licenses and passed two bills giving it the right to renegotiate or revoke existing licenses.

And cobalt and copper

The Kabanga project has 58 million tons of ore resources, containing 2.62% nickel and more than 1.52 million tons (3.3 billion pounds) of nickel. Nickel is a key raw material for electric vehicles (ev). The company said that the deposit also contains a large amount of cobalt and copper, and the mining period is 30 years.

Kabanga Nickel pointed out that it will obtain all project data and information from Barrick and Glencore, including the 2014 feasibility study report draft and subsequent updates.

The company also stated that it will build a hydrometallurgical plant, which is expected to reduce the carbon footprint, minimize the impact on the environment, and reduce capital and production costs.

Chris von Christierson, the company’s vice chairman, said at the signing ceremony: “The project aims to develop the country’s vision of adding value to all minerals and expand the smelter beyond Kabanga, making Tanzania a regional and central hub for East and Central Africa. , Processing minerals in Africa."

Fitch predicts that, driven by price increases, nickel ore output will increase by 8.3% in 2021 over 2020. Editor/Xu Shengpeng