BHP invests in Tanzanian nickel project

10th January 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


Font size: - +

PERTH ( – Diversified major BHP will make a $90-million investment into private firm Kabanga Nickel to accelerate the development of the Kabanga nickel project, in Tanzania.

Kabanga Nickel on Monday announced an initial $40-million investment by the miner, which will convert into an 8.9% equity stake in Kabanga Nickel once approvals and conditions are met. Once invested and on conversion the second tranche of $50-million will increase BHP’s equity stake in Kabanga Nickel to 17.8%, thereby valuing the project at $658-million.

On satisfaction of additional conditions, BHP will secure the right to make a further investment in Kabanga Nickel subject to achieving certain agreed milestones.

“We are delighted to announce this partnership with BHP. It highlights the world-class nature of the Kabanga deposit and its importance in helping meet the crucial decarbonisation challenge facing the world today,” said Kabanga Nickel CEO Chris Showalter.

“BHP is the ideal partner for Kabanga Nickel, bringing significant advantages and expertise that will enable us to move ahead with the project. BHP’s investment reflects the project’s strong environmental and social governance credentials and its role in improving environmental performance throughout the nickel value chain.”

Meanwhile, BHP will also invest $10-million into green technology firm Lifezone to advance the roll-out of its patented hydrometallurgical (hydromet) technologies, which are more cost-efficient than smelting, have a significantly lower environmental impact, and will ensure that finished Class 1 battery grade nickel, copper and cobalt are produced in Tanzania

Showalter said that BHP’s funding support of Lifezone’s hydromet technology would drive progress towards a greener world.

“Through development of Kabanga and Lifezone hydromet, Tanzania will have a growing role in the supply of the battery metals needed to move to a global low carbon economy.”

The investment into Lifezone allows for new patent applications, as well as research and development work that will further commercialise the Lifezone hydrometallurgical technology. Lifezone currently has patents granted in over 150 countries.

The investment into the Kabanga nickel project will support an acceleration in the mine’s development, including an enhanced metallurgical drilling programme to enable update of the definitive feasibility study and support the construction plans for the hydromet refinery. These studies are expected to be completed by the end of 2022. Site and infrastructure development is already underway. The investment will also support hiring and training of local Tanzanian talent.

The current project development timeline anticipates first production in 2025. Output will ramp up to target a minimum yearly production of 40 000 t of nickel, 6 000 t of copper and 3 000 t of cobalt.

Edited by Creamer Media Reporter


The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at

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?