BHP to invest $50m to advance Tanzania nickel project

BHP will invest $40 million in privately-owned Kabanga Nickel, which is developing the nickel project, and $10 million in Lifezone Ltd, whose ore refining technology is considered more cost-efficient and environmentally friendly.

BHP’s investment in UK-based Kabanga will give it an 8.9% stake once approvals and conditions are met, Kabanga said in a statement.

BHP has the option to invest a further $50 million to raise its stake to 17.8%, which would then value the project at $658 million.

The investment comes as global miners race to reduce emissions from their projects and gather supply of metals such as nickel, which are a key component of electric vehicles.

“This investment secures access to a world-class nickel sulphide resource and is aligned with BHP’s strategy to capture opportunities in future-facing commodities,” a BHP spokesperson said in an emailed statement.

Kabanga expects the first production in 2025, targeting a minimum annual nickel equivalent production of 65,000 tonnes.

The output will be ramped up to target a minimum annual production of 40,000 tonnes of nickel, 6,000 tonnes of copper and 3,000 tonnes of cobalt, the company said.