Tanzania’s Kabanga Project Gains U.S. Support as Nickel Demand Rises
Nickel, a critical metal for the energy transition and electric vehicle batteries, is set to become a significant export for Tanzania with the development of the Kabanga project. The U.S. government has shown strong interest in the project, as it aligns with broader efforts to secure supply chains for essential minerals.
On August 27, Lifezone Metals announced that it had signed a letter of commitment with the U.S. International Development Finance Corporation (DFC). This agreement is the first step toward Lifezone Metals obtaining political risk insurance from the DFC for its Kabanga nickel project in Tanzania.
Chris Showalter, CEO of Lifezone Metals, emphasized the growing collaboration between the U.S. and Tanzania, stating that the partnership aims to build resilient supply chains for critical minerals while also supporting sustainable economic development.
The Kabanga project is a crucial part of the U.S. strategy to secure access to essential metals. In this context, Helaina Matza, Acting Special Coordinator of the Partnership for Global Infrastructure and Investment (PGII), visited Tanzania this week. Along with U.S. Ambassador Michael Battle and Chris Showalter, Matza met with Tanzanian officials to discuss the progress and future of the Kabanga project.
The Kabanga project, which includes both mining operations and a refinery capable of producing battery-grade nickel, as well as copper and cobalt, is designed to meet the goals of the Initiative on Infrastructure and Investment Mobilization (IIMP), a G7 program. This initiative aims to mobilize $600 billion over five years to diversify global supply chains, with the Kabanga project expected to supply the U.S. market by 2026.
The Tanzanian government holds a 16% stake in the Kabanga project, while Lifezone Metals and its partners own the remaining 84%. The project also has backing from the mining giant BHP, which has invested $100 million into its development. A feasibility study for Kabanga is expected to be completed by the end of September 2024.
