Dar es Salaam. Good morning! The Chanzo is here with a rundown of major news stories reported in Tanzania on Thursday, July 6, 2023.
Optimism as Tanzania’s critical mineral investor, Lifezone Metals, starts trading on NYSE
On July 6, 2023, Tanzania reached a significant milestone in its strategic positioning as a critical minerals supplier. This achievement came after the listing of Lifezone Metals on the New York Stock Exchange. Lifezone Metals is the company that operates the Kabanga Nickel project located in the northwestern region of Tanzania. The company was listed under the ticker symbols LZM and LZMW.
The Kabanga Nickel project, currently the company’s sole metals extraction operation, is recognized as one of the world’s largest and highest-grade nickel sulfide deposits. It is estimated that the deposit contains approximately 44 million tons, with an average in-situ nickel grade of 2.61%, along with 0.35% copper and 0.19% cobalt.
One of the notable features of the company is its proprietary metal refining technology called Hydromet Technology. This technology offers advantages such as low emissions, and affordable operating and capital costs, and is considered a more effective alternative to traditional metal smelting methods.
In Tanzania, Lifezone operates through its subsidiary Tembo Nickel Corporation. In 2021, Lifezone, through its subsidiary Kabanga Nickel Limited (KNL), entered into a framework agreement with the Government of Tanzania. As a result, Tembo Nickel Corporation Limited was formed, in which the Tanzanian government holds a 16% non-dilutable free-carried interest, while KNL holds an 84% interest.
Since 2021, Lifezone has successfully attracted USD 100 million from its strategic partner, BHP (UK) Billiton DDS Limited, which now owns 17 percent of Kabanga Nickel Limited (KNL). The company concluded drilling activities in 2022, and currently, resettlement and environmental studies are underway in the extraction area.
The project has continued to gain significant attention, for example during Vice President Kamala Harris’ visit to Tanzania on March 30, 2023, VP Harris highlighted the ongoing efforts to establish the first-of-its-kind processing facility by the company.
“Work is currently underway to build the first-of-its-kind processing facility on the continent for minerals that go into the electric vehicle battery,” said VP Harris during a joint press with Tanzania President Samia Suluhu.
“This project is an important and pioneer model using innovative and low-emission technology and high labor standards, importantly raw minerals will soon be processed in Tanzania by Tanzanians.”
“This will deliver battery-grade nickel to the United States and global market as soon as 2026. So our administration is now working with partners to identify opportunities for critical minerals to be processed in this new facility,” added Harris.
Lifezone’s reception at the stock exchange has been positive, with the stock price rising by 32.8 percent on July 06, 2023. The stock opened at $10.32 per share and closed at $16.60 around 3:59 EDT (10:59 EAT).
The potential of Lifezone’s technology, its smooth interaction with the Tanzanian government, and progress in the extraction process are expected to maintain a positive trajectory for the company’s stock.
The listing of Lifezone is expected to attract more investors and encourage further exploration opportunities in Tanzania.
Debate around Tanzania-Dubai deal gets ugly as critics claim to receive threats
The debate on the inter-governmental agreement between Tanzania and the Emirati of Dubai on the operations of the Dar es Salaam port got uglier on Thursday after some critics reported receiving death threats following their criticism of the controversial deal.
Rugemeleza Nshala, the country’s celebrated lawyer and advocate, came out yesterday to reveal to the public that his life was in danger after being tipped by insiders on the plot aimed at “eliminating” him with his statements concerning the agreement named as the motivation.
Nshala, who doubles as the Executive Director of the environmental group Lawyers’ Environmental Action Team (LEAT), told a press conference in Dar es Salaam that “credible sources” from the government informed him of the plot, noting that he’s willing to die to defend his country.
“I called this press conference today to inform the public that I’ve received news from credible sources within the system that my life was in danger after criticising the agreement between Tanzania and Dubai,” Dr Nshala said.
Full story here.
Former PM Salim Ahmed Salim awarded Order of Amilcar Cabral
Cape Verde President Jose Maria Neves awarded former Tanzania’s Prime Minister Salim Ahmed Salim the Order of Amicar Cabral, the country’s highest honorary declaration.
According to a statement from Tanzania’s Government Communication Unit on Thursday, the awarding ceremony occurred on Wednesday while commemorating the 48th anniversary of the independence of Cape Verde, an archipelago and island country in the central Atlantic Ocean.
Amílcar Cabral was an agronomist who led an armed struggle that ended Portuguese colonialism in Guinea-Bissau and Cabo Verde. A close associate with the deep complicity of the Portuguese colonial authorities assassinated him.
Dr Salim, who also served as the Secretary General of the Organisation of African Unity (OAU), now the African Union (AU), was awarded the decoration in “recognition of his dedicated role towards Cape Verde’s struggle for dignity and self-determination.”
The award was received on his behalf by his son, Ahmed Salim.
“Dr Salim, in his role as defender of Cape Verde and an enthusiastic supporter of Amilcar Cabral’s political and diplomatic initiatives with the UN institutions, should also be highlighted, including the proposal to send, in April 1972, an observation mission to the liberated regions of Guinea-Bissau,” reads the Presidential Decree issued by the Presidency of Cape Verde.
“Finally, to culminate [Dr Salim’s] unfailing commitment to the liberation of our country, he went on purpose, to the city of Praia, [Cape Verde’s capital] to witness the founding of the Republic of Cape Verde on July 5, 1975,” added the Presidential Decree.
IIT campus introduced in Zanzibar, first-ever outside India
The government of India has signed a Memorandum of Understanding (MoU) with that of Zanzibar that would allow the former to establish an Indian Institute of Technology (IIT) campus in the isles, the first-ever outside India.
The MoU was signed during the visit to Zanzibar by India’s External Affairs Minister Subrahmanyam Jaishankar. Mr Jaishankar arrived on Wednesday for a four-day visit to Tanzania to strengthen the relations between Tanzania and India.
The MoU was signed between India’s Ministry of Education, IIT Madras, and Zanzibar’s Ministry of Education and Vocational Training. It provides the framework for the parties involved to outline the proposed IIT Madras campus set-up in Zanzibar, with plans to launch programs by October 2023.
IIT-Madras is considered the best engineering institute among all the technology institutes in India. For the 6th consecutive year, IIT-Madras is ranked 1st in the National Institutional Ranking Framework (NIRF) engineering category, a methodology adopted by the Indian Ministry of Education.
As per the 2022 report, the institute bags 1st position overall, 2nd in research institutes, and 10th in the management category of NIRF rankings 2022. The university is ranked 250th position in the QS World University Rankings 2023.
The move is anticipated to strengthen the educational partnership between India and Tanzania while reflecting India’s commitment to fostering people-to-people ties across Africa and the Global South.
Establishing an IIT campus in Zanzibar is part of India’s efforts to expand the influence and reach of its premier educational institutions.
The move aligns with India’s National Education Policy (NEP) 2020 recommendations, encouraging high-performing Indian universities to establish campuses abroad.
After Zanzibar, Dr Jaishankar is expected in Dar es Salaam from 07-08 July 2023, where he will co-chair the 10th India-Tanzania Joint Commission Meeting with his counterpart and call on the country’s top leadership, including several Cabinet rank Ministers.
While there, he will meet with the members of the Parliamentary Friendship Group for India and inaugurate an India-Tanzania business meeting. He will also address the Indian diaspora and inaugurate the bust of Swami Vivekananda in Dar es Salaam.
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