A US-backed investment consortium has emerged as the preferred partner for one of the world’s largest undeveloped nickel projects.
Lifezone Metals (NYSE:LZM), which is developing the Kabanga Nickel Project in Tanzania, has selected Orion CMC as its preferred investment partner, according to Bloomberg.
The report follows comments by Lifezone CEO Chris Showalter during last week’s earnings call, where he confirmed the company had identified its preferred project partner.
If completed, the deal would mark one of Orion’s first major investments since the consortium was established last year with sovereign backing from the US International Development Finance Corporation and Abu Dhabi’s L’imad Holding.
Located in Tanzania’s Kagera Region, Kabanga is regarded as one of the world’s largest and highest-grade nickel sulphide deposits. Lifezone estimates the project could produce about 350,000 tonnes of nickel concentrate annually.
The project is expected to cost around US$940 million ($1.3 billion) to develop.
Lifezone is targeting a final investment decision early next year, although negotiations with the Tanzanian government, which owns a 16% stake in the project, have progressed more slowly than expected, the US-listed company says.
Kabanga was previously backed by BHP (ASX:BHP), but the Australian miner exited the project last year after terminating its option to acquire a controlling interest and selling its minority stake.
Lifezone Metals is a modern metals company with the aim of creating value across the battery metals supply chain of extraction, processing, and recycling.
Write to Jackson Chen at Mining.com.au
Image: Lifezone Metals
