Copper|Environment|Gold|Mining|PROJECT|Refinery|Refining|Stainless Steel|Steel|supply-chain
Copper|Environment|Gold|Mining|PROJECT|Refinery|Refining|Stainless Steel|Steel|supply-chain
copper|environment|gold|mining|project|refinery|refining|stainless-steel|steel|supply chain

Kabanga says Tanzania mine may answer Elon Musk’s nickel plea

19th November 2021

By: Bloomberg


Font size: - +

Kabanga Nickel is seeking to raise $1.3-billion for a massive mining project in Tanzania that the company says could help ease electric-vehicle manufacturers’ insatiable demand for nickel.

“We are accelerating these kind of discussions as quickly as possible,” CEO Chris Showalter, a former investment banker, said in an interview. “Because of the quality of the project, we have developed substantial interest.”

Kabanga is trying to secure funding for a $950-million mine and $350-million refinery that would be developed simultaneously in the northwest part of the country. The project would eventually produce as much as 50 000 t/y of nickel cathodes, as well as smaller amounts of copper and cobalt. The company plans to bring it online by 2024, with an additional year to reach a steady state of production.

Nickel, traditionally used to make stainless steel, is also a key component in lithium-ion batteries, allowing vehicle manufacturers to reduce the use of cobalt, which is more expensive and has a less transparent supply chain. Tesla CEO Elon Musk has asked companies to “please mine more nickel.”

“I would emphatically say we are very much positioned to start delivering to Mr. Musk and all other strategic battery EVs,” said Showalter. Competition among electric-vehicle companies to secure future supplies puts Kabanga in a “pretty strong competitive environment” as it negotiates with investors, he added.

The Tanzanian government has a 16% stake in the project, which was previously owned by Barrick Gold Corp and Glencore. Their joint venture lost a license for the undeveloped project in 2018, when Tanzania introduced a new mining regime.

Kabanga plans to process the metals in a refining process that uses less electricity and has a reduced carbon footprint, which may help it sell its output at a premium, according to Showalter.

“The world needs clean nickel and we are not going to be the only solution, but we are the next fast-growing project,” he said.

Edited by Bloomberg



John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.


Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...


Latest Multimedia

sponsored by

Northam CEO Paul Dunne.
Platinum remains in fundamental deficit – Northam
1st March 2024 By: Martin Creamer
Photo of Martin Creamer
On-The-Air (01/03/2024)
1st March 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.122 0.156s - 113pq - 2rq
Subscribe Now