LISTING of Tembo Nickel’s parent company Lifezone Metals on the New York Stock Exchange (NYSE) expresses confidence that the project’s set goal is bound to be implemented successfully.
As trading commences on the NYSE, it means that the company has access to the deepest and largest pool of capital in the world for the investment of hydromet technology, with the aim of addressing decarbonisation through production of battery metals which are currently on high demand at the lower cost.
This new development shows that President Samia Suluhu Hassan needs to open up the country and continues to take shape as witnessed through various engagements and exchange of visits by the two countries top leaders is yielding results.
A seasoned economists-cum-investment banker, Dr Hildebrand Shayo, commented on the development indicating that trading in the stock will also help to create wealth by leveraging growth in multiple sectors resulting in a profit.
“With enough liquidity the company [Tembo] can certainly know within timeline they have planned can implement the project successful,” Dr Shayo told Business Standard yesterday.
“However,” the economist warned, “it is also important to note that the stock market also has disadvantages, including high risk, volatility, high brokerage on trading that can also make a company go bankrupt.”
Reports indicate that the move comes following completion of the business combination, GoGreen Investments Corporation merged into a wholly-owned subsidiary of Lifezone Metals.
According to the report, the company received gross proceeds from the transaction of approximately 86.6 million US dollars, including approximately 70.2 million US dollars in aggregate from a private investment in public equity and the receipt of approximately 16.4 million US dollars of cash from GoGreen’s trust account, net of redemptions.
A statement from Tembo Nickel revealed that the Kabanga Nickel Project was one of the largest and highest qualities undeveloped nickel deposits in the world. It is envisioned that the project will create skilled and technical jobs and provide high standards of community support for the local communities around the implementation area in Ngara District, Kagera and elsewhere.
Similarly, the creation of as many as 900 new jobs are anticipated ultimately at the mine site as the project nears peak construction, in addition to over 270 new jobs at the multi-metal processing facility.
It is on this backdrop that Lifezone Metals believes it is poised to become a major supply chain solution to automakers to help meet global battery demand. Nickel is a key component for batteries, making up 31 per cent of the carbon budget in an EV battery.
The Nickel Institute suggests that nickel represents up to 80 per cent of battery’s active material, and the World Economic Forum states demand for high-purity battery-grade nickel will increase by a factor of 24 in 2030 compared to 2018 levels, putting the market under pressure in the next few years.
With the new development, it implies that Tembo Nickel continues to operate as a partnership with the government for the equitable sharing of benefits from the Kabanga Nickel Project.
The Kabanga Nickel Project will be a mine-to-metal operation, producing high-purity battery grade nickel, copper and cobalt refined metals in Tanzania.
Tembo Nickel is owned 84 per cent by Kabanga Nickel Limited, and 16 per cent by the government and it has been formally established for the mining, processing and refining of Class 1 nickel with cobalt and copper co-products.
During the opening ball ceremony, the Chief Executive Officer of Tembo Nickel Mr Benedict Busunzu noted: “We are proud to say that Tembo Nickel, our company responsible for bringing Kabanga to life, is making great strides every day to demonstrate to the world how we can disrupt the status quo in the metal’s extraction process.
“We are proud that Kabanga and Tanzania will serve as the case study for this. We believe that by Lifezone Metals becoming a public company we have gained one more validation. It is an honor to be present for the official opening of trading today, and this is significant to my fellow citizens. We get to take Tanzania to the U.S. market via Lifezone Metals’ public company status.”
The connection between Tanzania and the US remains critical as in March President Samia welcomed US Vice President Kamala Harris. Their meeting in Dar es Salaam showcased the growing strategic relationship between the two nations and Tanzania’s critical role as a key emerging supplier of critical minerals.