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Partner’s exit will not affect Kabanga project, says Tembo Nickel
What you need to know:
- BHP Group has sold its 17 percent stake in Kabanga Nickel Limited to Lifezone Metals Limited
Dar es Salaam. The planned groundbreaking ceremony for the Kabanga Nickel Project, set for October this year, will go ahead as scheduled despite BHP Group’s decision to sell its 17 percent stake in Kabanga Nickel Limited (KNL) to Lifezone Metals Limited.
Lifezone, the parent company of KNL, announced on July 18 that it had completed a definitive agreement with BHP Billiton (UK) DDS Limited to acquire the mining giant’s entire equity interest in KNL. As a result, Lifezone now owns 100 percent of KNL, which in turn holds an 84 percent stake in Tembo Nickel Corporation Limited (TNCL)—the operating entity for the Kabanga project. The remaining 16 percent is held by the Government of Tanzania.
All existing agreements with BHP, including the T2 Option Agreement, have been terminated and Lifezone has assumed full control over the offtake from the project.
Speaking to The Citizen on Wednesday, TNCL CEO Benedict Busunzu said BHP’s exit was a routine business transaction and would not affect the project’s progress. He reassured Tanzanians that the project remains on track and is expected to deliver significant economic benefits.
“Our groundbreaking plan remains unchanged. Lifezone is already engaging other interested investors. What happened with BHP is simply a business decision—they are free to invest elsewhere,” he said.
Mr Busunzu emphasised that the project would provide extensive local benefits, including job creation, technology transfer and increased government revenue through taxes and royalties.
“This project is poised to transform the lives of surrounding communities through its economic impact.”
In a press statement, Lifezone founder and chairman Keith Liddell said the transaction enables the company to align its technical, commercial and ESG strategies ahead of the Final Investment Decision.
“This transaction gives Lifezone full ownership of Kabanga Nickel Limited, allowing us to move forward with confidence and deliver long-term value for all stakeholders,” he said.
Lifezone CEO Chris Showalter called the deal a major milestone.
“BHP has been a valuable and supportive partner and their exit marks the beginning of the next phase of the project’s development. Our focus remains on delivering a world-class, low-cost nickel project that benefits Tanzania and its people,” he said.
The transaction comes just months after Lifezone executives met with Minerals minister Anthony Mavunde in May to reaffirm their commitment to the October launch.
At the time, Mr Mavunde welcomed the progress, describing Kabanga Nickel as one of Tanzania’s flagship mining ventures with potential to drive substantial economic development.
“This project represents one of the largest strategic investments in Tanzania’s mining sector. The commitment shown by Tembo Nickel is vital for the sector’s growth and the country’s broader economic development,” he said.
Mr Mavunde also urged all licensed mining firms to begin operations without delay, in line with the Mining Act, Cap 123.
“The government calls on all mining licence holders to commence development activities promptly. Compliance with legal requirements and timely execution are essential for ensuring that mining projects deliver lasting value to communities and the nation.”
