Latest news with #BHPGroup
Zawya
12 hours ago
- Business
- Zawya
Lifezone acquires BHP's share in $2.5bln Tanzania nickel venture
BHP Group has opted to sell its interest in the $2.5bn Kabanga nickel project in Tanzania to its partner Lifezone Metals for as much as $83m, Lifezone said. The NYSE-listed company will acquire BHP's 17% equity interest in Kabanga Nickel Limited (KNL), the majority owner of the Kabanga Nickel Project in northwestern Tanzania, Lifezone said in a filing. The company issued a report on Friday that put development costs for the project at $2.49bn. It is expected to produce around 50,000 metric tonnes of nickel annually once fully ramped up, a process that will take six years, including construction. A final investment decision on the project is due next year. BHP had agreed in 2022 to invest as much as $100m in the nickel mine and processing facilities if certain conditions were met. BHP still considers Kabanga to be one of the world's best undeveloped nickel sulphide projects, said a source with knowledge of the matter, but the uncertain nickel market outlook and the miner's capital allocation framework have made investments in greenfield nickel projects challenging. A BHP spokesperson declined to comment. BHP has shifted its view on nickel on the back of a boom in output from Indonesia in recent years. It put its Australian Nickel West operations on care and maintenance last year due to a poor outlook for nickel prices, and a decision on the future of those operations is due by early 2027. As a result of the transaction, Lifezone now owns 100% of KNL, which in turn holds an 84% interest in Tembo Nickel Corporation Limited (TNCL), the Tanzanian operating company for the Kabanga Nickel Project. The remaining 16% of TNCL is held by Tanzania's government. All existing agreements with BHP have been terminated and Lifezone has also assumed full control of 100% of the offtake from the Kabanga Nickel Project, it said. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
21 hours ago
- Business
- Zawya
BHP exits $942mln Tanzania nickel project, partner Lifezone says
MELBOURNE: BHP Group has opted to sell its interest in the $942 million Kabanga nickel project in Tanzania to its partner Lifezone Metals for as much as $83 million, Lifezone said. The NYSE-listed company will acquire BHP's 17% equity interest in Kabanga Nickel Limited (KNL), the majority owner of the Kabanga Nickel Project in northwestern Tanzania, Lifezone said in a filing late on Friday. The company issued a report on Friday that put pre-production capital costs for the project at $942 million and life of mine costs at $2.49 billion. It is expected to produce around 50,000 metric tons of nickel annually once fully ramped up, a process that will take six years including construction. A final investment decision on the project is due next year. BHP had agreed in 2022 to make an investment of as much as $100 million in the nickel mine and processing facilities if certain conditions were met. BHP still considers Kabanga to be one of the world's best undeveloped nickel sulphide projects, said a source with knowledge of the matter, but the uncertain nickel market outlook and the miner's capital allocation framework have made investments in greenfield nickel projects challenging. A BHP spokesperson declined to comment. BHP has shifted its view on nickel on the back of a boom in output from Indonesia in recent years. It put its Australian Nickel West operations on care and maintenance last year due to a poor outlook for nickel prices, and a decision on the future of those operations is due by early 2027. As a result of the transaction, Lifezone now owns 100% of KNL, which in turn holds an 84% interest in Tembo Nickel Corporation Limited (TNCL), the Tanzanian operating company for the Kabanga Nickel Project. The remaining 16% of TNCL is held by Tanzania's government. All existing agreements with BHP have been terminated and Lifezone has also assumed full control of 100% of the offtake from the Kabanga Nickel Project, it said. (Reporting by Melanie Burton; Editing by Jamie Freed)
Yahoo
2 days ago
- Business
- Yahoo
BHP faces $1.7bn blowout at Jansen project, production pushed to mid-2027
BHP Group has announced a delay and a potential cost overrun of up to $1.7bn (A$2.61bn) at its Jansen potash project in Canada. This comes as the miner reported 'record' copper and iron ore production for fiscal year 2025 (FY25). The Jansen project is crucial to BHP's strategy to diversify its portfolio, with more than a decade invested in its development. The Australia-based mining giant now expects the first stage of the Jansen project to cost between $7bn and $7.4bn, a substantial increase from the initial $5.7bn estimate. BHP attributes the rise to escalated costs, design and scope modifications, and lower than expected productivity. Additionally, the miner has delayed first production to mid-2027, a setback compared with the earlier target of 2026. It is also contemplating a two-year postponement for the second stage of the Jansen project, moving the target to FY31. This decision aligns with the expectation of additional potash supply entering the market in the medium term. In a statement, the company said: "Given potential for additional potash supply coming to the market in the medium term, and as part of our regular review of the sequencing of capital projects under the capital allocation framework, we are considering a two-year extension for the execution of Jansen Stage 2." Despite the challenges at Jansen, BHP highlighted its strong operational performance, with a 'record' copper output of more than two million tonnes (mt) in FY25. However, the company forecasts a decrease in production in FY26 to between 1.8mt and 2mt due to anticipated lower grades at the Escondida mine in Chile. Iron ore production also reached a new high, with BHP's Western Australia operations producing 290mt for the year. In another move, BHP revealed it is evaluating the potential sale of its Western Australia Nickel assets. These assets were placed into temporary suspension late last year amid oversupply in the global nickel market and a sharp plunge in forward consensus nickel prices. The company plans to review the suspension in February 2027. Meanwhile, last month, BHP announced it will collaborate with XCMG Mining Equipment to deliver fleet solutions across its operations worldwide. "BHP faces $1.7bn blowout at Jansen project, production pushed to mid-2027" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
2 days ago
- Business
- Reuters
BHP exits $2.5 billion Tanzania nickel project, partner Lifezone says
MELBOURNE, July 21 (Reuters) - BHP Group ( opens new tab has opted to sell its interest in the $2.5 billion Kabanga nickel project in Tanzania to its partner Lifezone Metals (LZM.N), opens new tab for as much as $83 million, Lifezone said. The NYSE-listed company will acquire BHP's 17% equity interest in Kabanga Nickel Limited (KNL), the majority owner of the Kabanga Nickel Project in northwestern Tanzania, Lifezone said in a filing late on Friday. The company issued a report on Friday that put development costs for the project at $2.49 billion. It is expected to produce around 50,000 metric tons of nickel annually once fully ramped up, a process that will take six years including construction. A final investment decision on the project is due next year. BHP had agreed in 2022 to make an investment of as much as $100 million in the nickel mine and processing facilities if certain conditions were met. BHP did not respond immediately to a request for comment on why it had sold its stake in the project. The divestment comes as BHP has since shifted its view on nickel on the back of a boom in output from Indonesia in recent years. It put its Australian Nickel West operations on care and maintenance last year due to a poor outlook for nickel prices and a decision on the future of those operations is due by early 2027. As a result the transaction, Lifezone now owns 100% of KNL, which in turn holds an 84% interest in Tembo Nickel Corporation Limited (TNCL), the Tanzanian operating company for the Kabanga Nickel Project. The remaining 16% of TNCL is held by Tanzania's government. All existing agreements with BHP have been terminated and Lifezone has also assumed full control of 100% of the offtake from the Kabanga Nickel Project, it said.
CTV News
4 days ago
- Business
- CTV News
BHP says costs at Jansen potash project up, first production pushed back to mid-2027
BHP has announced it will pour billions of dollars into a potash mine southeast of Saskatoon. SASKATOON — BHP Group Ltd. says the cost of the first phase of its Jansen potash project in Saskatchewan is going to be more expensive than earlier expectations. The miner now estimates the project cost will be in a range of US$7 billion to US$7.4 billion, up from an earlier estimate of US$5.7 billion. The company is also pushing back its estimate for first production from the mine to mid-2027 from earlier expectations for the end of 2026. BHP blamed the increased costs on inflationary pressures, design development and scope changes and lower-than-expected productivity. It estimates the first phase of the Jansen project is 68 per cent complete. The company also says given the potential for additional potash supply coming to market in the medium term, it's considering delaying first production from Jansen's second phase by two years to its 2031 financial year. This report by The Canadian Press was first published July 18, 2025.
