Tanzania has granted Tembo Nickel, a subsidiary of Lifezone Metals and the operator of the Kabanga Nickel project, a license for a multi-metal processing facility. Under this license, Tembo Nickel will establish a processing facility in Kahama at the Buzwagi Special Economic Zone to refine nickel, copper, and cobalt.
A large share of the mineral to be processed is expected to come from the Kabanga Nickel project, 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.
Speaking in Dodoma during the formal ceremony of receiving the license Lifezone Metal CEO, Chris Showalter said the announcement is proof of the dedication and work required to bring Tembo Nickel mine and refinery from plan and vision to reality.
“Our goal is to maximize the value of Nickel, copper, and cobalt right here with Tanzanians’ hands shaping Tanzania’s future,” explained Mr. Showalter.
The refinery is expected to use proprietary metal refining technology called Hydromet Technology. A technology that offers advantages such as low emissions, and affordable operating and capital costs, and is considered a more effective alternative to traditional metal smelting methods.
The new refinery positions Tanzania strategically to serve the market in its surrounding neighbors, including the Democratic Republic of Congo, Burundi, Zambia, Botswana, and Zimbabwe.
Tanzania’s Minister of Minerals, Anthony Mavunde explained that the new refinery will put Tanzania closer to its mining vision 2030 which states that mining is life and wealth.
“The construction of this multi-metal refinery will be a solution to the challenge that miners in the country have faced, being forced to transport metal concentrates abroad for processing or sell the minerals in concentrate form at low prices,” underscored Mr Mavunde.
While Tanzania has huge potential for critical minerals, most of them are still in the pre-development stage. The country is expected to soon start large production of graphite, Nickel, copper, and cobalt following new investment in the country.
The Kabanga Nickel project has continued to gain significant global attention, for example during Vice President Kamala Harris’ visit to Tanzania on March 30, 2023, VP Harris talked in length about the planned refinery.
“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’s 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.
On July 6, 2023, Lifezone Metals was listed on the New York Stock Exchange. Tanzania Minister of Mineral said about USD 500 Million is expected to be invested in the refinery.
One Response
Good progress, processing the minerals here and hence adding some value! However, more value would be extracted from the minerals in terms taxes and jobs and the attendant forward and backward linkages to the economy, if we could convince the companies involved to build the batteries here and export them worldwide!