Tanzania pushes for Kabanga Nickel project
DODOMA: ONE of the three biggest mining companies in the world, BHP is looking forward to reopening its mining activities in Africa by teaming up with Lifezone Metal company to invest in Kabanga Nickel in Ngara, Kagera region.
The company suspended its mining activities in Africa 15 years ago and now it is on its way to doing business on the continent through Tanzania.
Other world’s big mining companies are Glencore, Jiangxi Copper and Rio Tinto.
Minister for Minerals, Mr. Anthony Mavunde met with BHP top officials to discuss various issues related to the investment project.
The minister assured the investors that the government is committed to ensuring good investment climate and expressed gratitude for the company’s decision to reopen investment in Africa through Tanzania.
He said the government will continue its efforts to at tract more investors in the country under the directives of President Samia Suluhu Hassan, which are clearly stipulated through the 4R philosophy.
During the meeting, Mr. Mavunde gave a report on the progress of the Kabanga Nickel project, which is under Tembo Nickel.
Tembo Nickel Corporation Limited is a mine-to-metal company formed through the Framework Agreement between Kabanga Nickel Limited (84 per cent) and the Government of Tanzania (16 per cent) for the development of the Kabanga nickel deposits in Tanzania.
The project is set to cost 2.2billion US dollar (about 5.9tri/-) of which 1.6 billion US dollar (about 4.3tri/-) will be used for developing a mining site and construction of mining processing plant in Ngara District.
Moreover, 600million US dollars (about 1.6tri/-) will be used for the construction of the multi-metal refinery facility in the special economic zone at Buzwagi, Kahama District in Shinyanga region.
BHP makes 60billion US dollars (about 160tri/-) annually in its mining businesses across the world.
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The Minister who was accompanied by the Ambassador of Tanzania to Japan, who also oversee Australia, Mr. Baraka Luvanda visited the multi-metal refinery facility, which is set to use the modern Hydrometallurgy technology through Tembo Nickel, which owns Kabanga Nickel.
Kabanga is the largest development-ready nickel sulphide deposit in the world, it contains in-situ nickel equivalent resources estimated at 1.86 million tonnes and an in-situ nickel equivalent grade of 3.44 per cent.
The project timeline anticipates first production in 2025, targeting minimum annual nickel equivalent production of 65,000 tonnes, with 30+ years life of mine and exploration upside potential.
