The completion of a feasibility study on the Tanzania-based Kabanga nickel project, in July 2025, was a “defining moment” for project owner modern metals developer Lifezone Metals as well as for the host country, as it confirmed the technical and economic strength of “one of the world’s most significant undeveloped nickel sulfide deposits”, says CEO Chris Showalter.

“With declared mineral reserves, robust economics and a path to final investment decision [FID] targeted for 2026, we are advancing a project that not only delivers strategic value to the critical metals supply chain, but also creates long-term economic benefits for Tanzanians,” he says.

The feasibility study represents the first time that mineral reserves – of 52.2-million tonnes grading 1.98% nickel, 0.27% copper and 0.15% cobalt – have been declared at Kabanga since its discovery nearly 50 years ago.

The study confirms strong project economics, including a post-tax net present value of about $1.58-billion at an 8% discount rate, an internal rate of return of 23.3% and an all-in sustaining cost of $3.36/lb of payable nickel.

These metrics position Kabanga as “one of the lowest-cost nickel projects globally”, says Showalter.

Total production is 902 000 t of nickel, 134 000 t of copper and 69 000 t in intermediate product over the life of the mine.

At steady-state production, the operation will process about 3.4-million tonnes of ore a year, generating a high-grade nickel/copper/cobalt concentrate for downstream refining.

Tanzania’s government will benefit from a 16% carried interest in the project; about $1.2-billion in royalties, fees, levies and duties; and roughly $2.4-billion in corporate income taxes over the life of the mine, he says.

The Kabanga nickel project’s development plan includes the construction of a commercial-scale hydrometallurgical refinery at Kahama, staged to start about five years after initial concentrate production, allowing for a more efficient allocation of capital and resources and to promote local beneficiation.

“The anticipated revenue streams complement local job creation, supplier opportunities and community development programmes associated with the mine’s construction and operations; and the future in-country beneficiation of the refinery.

“Expanded infrastructure, including rail and port improvements, further enhances Tanzania’s export capacity and regional connectivity,” says Showalter.

Yearly production during steady state is expected to reach about 615 000 t of nickel, 91 000 t of copper, and 46 000 t of cobalt, with dry nickel concentrate output of 348 000 t a year.

The Finer Details

The current life of the Kabanga nickel project is 18 years with inferred resources sitting outside of the mine plan and other prospective zones within the licence area.

This high-grade nickel/copper/cobalt concentrate is destined to support multisectoral industries, owing to the fundamental role these metals play in modern economies, says Showalter.

“Once fully operational, Kabanga will function as an underground mining and mineral processing operation. Ore will be extracted from underground deposits using modern mining techniques and transported to the surface for processing.”

The ore will be subjected to conventional crushing, grinding and flotation processes at the concentrator facility to ensure the efficient separation of nickel, copper and cobalt from the mined rock.

The resulting high-grade concentrate will be prepared for transport through trusted logistical routes for further downstream beneficiation facilities in the future, before being sent on to international markets.

In terms of demand, Showalter notes that stainless steel production remains a major traditional consumer of nickel, accounting for about 65% of global nickel demand, while other sectors – such as electronics, aerospace and renewable-energy infrastructure – benefit from reliable sources of nickel, copper and cobalt for specialty alloys, electrical systems and high-performance components.

He adds that there is also high demand for nickel and cobalt products for lithium-ion cathodes in batteries, driven by the expansion of the electric vehicle market.

Lifezone Metals plans to advance Kabanga towards an FID later this year, which will be followed by the construction of the mine, concentrator and related infrastructure.

Meanwhile, the company is currently progressing the project’s engineering, design work, mine planning and metallurgical testing.

Construction encompasses mine development, tailings storage facility establishment, surface infrastructure development and the construction of the concentrator plant that will process ore from Kabanga.

There will also be a focus on securing strategic partnerships and offtake agreements, as well as completing permitting and regulatory approvals.

Hydrometallurgical Technology

The future integration of Lifezone Metals’ hydrometallurgical technology will enable the efficient recovery of metals from sulfide concentrates while bypassing traditional smelting and, thus, reduce environmental impacts, says Showalter.

Lifezone Metals’ hydrometallurgical technology enables mining operations to reduce the carbon footprint of nickel production and support sustainable battery metal processing.

The refinery is expected to be located near the town of Kahama, within the Buzwagi Special Economic Zone, and will produce battery-grade nickel, copper and cobalt, which will be exported to global customers through the Port of Dar es Salaam.

Major infrastructure developments in Tanzania – such as upgrades to the railway to standard gauge, hydropower capacity and port handling efficiency at Dar es Salaam – have gone a long way towards unlocking the Kabanga nickel project, he states.

“Lifezone Metals is focused on bringing Kabanga into production responsibly, and in doing so, establishing a modern and more sustainable metals supply chain that integrates mining, processing and refining in the future,” says Showalter.

By combining high-grade resources with advanced processing technology, the company aims to deliver critical battery metals while contributing to economic development in Tanzania and supporting global decarbonisation efforts.