Mining, Oil&Gas

Kabanga Nickel project nears implementation as Tanzania, investors finalise key agreements

Executives behind the project expressed confidence that substantial progress had been made and that the development was now entering a decisive phase

Dar es Salaam. Tanzania’s flagship Kabanga Nickel Project has moved closer to implementation following a high-level briefing to President Samia Suluhu Hassan on the progress of negotiations and project preparations.

According to a public statement issued by the Directorate of Presidential Communications at State House on June 9, 2026 executives behind the project expressed confidence that substantial progress had been made and that the development was now entering a decisive phase.

The briefing was delivered by Kabanga Nickel Limited and Lifezone Metals founder and executive chairman Keith Liddell together with Treasury Registrar Nehemiah Mchechu.

The meeting reviewed ongoing efforts to advance one of Tanzania’s most strategic mining and industrial investments.

Discussions focused on transitioning the project into the development phase while ensuring that beneficiation and value addition remain central to its implementation.

Mr Liddell described the discussions with President Samia as encouraging and said the Head of State had reaffirmed her commitment to the project and support for efforts aimed at advancing it under the agreed implementation plan.

“It was an absolute honour to meet Her Excellency. She reaffirmed her commitment to the project and her support for advancing it under the agreed implementation plan,” he said.

Mr Liddell noted that significant common understanding had been reached on the project’s structure, particularly regarding how mineral beneficiation could be undertaken in Tanzania for the benefit of the country and all stakeholders.

Delivering a message to investors, communities and stakeholders, he added: “The mine is coming. The beneficiation is coming. Be assured that we are working closely with Team Tanzania to deliver this project as quickly as possible.”

Treasury Registrar Mr Mchechu described Kabanga as a transformative project with the potential to contribute significantly to Tanzania’s industrialisation agenda, employment creation and economic growth.

He said the government’s objective had consistently been to ensure that mineral beneficiation takes place within Tanzania so that maximum value is derived from the country’s natural resources.

According to Mr Mchechu, recent discussions had helped resolve several outstanding issues and established a practical framework acceptable to both the government and investors.

“We have developed a structure that both the government and investors are comfortable with. We are now working to finalise the remaining elements so that implementation can begin,” he said.

He added that while preparations on the mining side were largely advanced, efforts were now focused on finalising arrangements for the refinery and beneficiation components of the project.

Mr Mchechu said the project was expected to generate substantial benefits through local content participation, tax revenues, dividends, technology transfer and industrial development.

“This is a game-changing project. Together with other strategic investments, it has the potential to accelerate Tanzania’s industrial transformation and long-term development goals,” he said.

Located in Ngara District in Kagera Region, the Kabanga Nickel Project is regarded as one of the world’s largest and highest-grade undeveloped nickel sulphide deposits.

The project is expected to position Tanzania as a significant player in the global supply chain for critical minerals used in electric vehicle batteries and clean energy technologies.

A major component of the development is the planned multi-metal processing facility at Kahama in Shinyanga Region.

In March 2024, Lifezone Metals received a Multi-Metal Processing Facility Licence from the government of Tanzania, allowing the refining of nickel, copper and cobalt from Kabanga within the country.

The Kahama refinery will utilise Lifezone’s Hydromet Technology, which enables direct metal production without conventional smelting.

The technology is expected to reduce emissions, lower processing costs and support Tanzania’s policy of in-country value addition.

The refinery will be located within the Buzwagi Special Economic Zone, benefiting from existing infrastructure, including power connections, roads, an airstrip and facilities inherited from the former Buzwagi Gold Mine.

The project traces its roots to January 2021 when the government of Tanzania and UK-based LZ Nickel Limited formed Tembo Nickel Corporation, a joint venture in which the government holds a non-dilutable 16 per cent stake.

Officials have previously estimated that the project could generate annual revenues averaging about $664 million, while creating employment opportunities, increasing tax collections, stimulating business growth and strengthening Tanzania’s position in the global critical minerals market.

Nickel from Kabanga is considered a strategic resource due to growing international demand for battery minerals required in electric vehicles and the global transition towards cleaner energy systems.

Tanzania also expects the project to encourage the development of downstream industries and expand domestic mineral processing capacity.

The government has repeatedly described the project as a cornerstone of its broader strategy to ensure that more value from mineral resources is retained within the country through local processing, industrialisation and equitable sharing of economic benefits.

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