Latest news with #nickel
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)
Reuters
a day ago
- Business
- Reuters
BHP exits $942 million Tanzania nickel project, partner Lifezone says
MELBOURNE, July 21 (Reuters) - BHP Group ( opens new tab has opted to sell its interest in the $942 million 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 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. (This story has been corrected to fix the project capital costs to $942 million pre-production from $2.5 billion life of mine development costs in the headline and paragraphs 1 and 3)
Yahoo
2 days ago
- Business
- Yahoo
Lifezone Metals acquires BHP's stake in Tanzania nickel project
Lifezone Metals has finalised a definitive agreement with BHP Billiton (UK) DDS to acquire its 17% equity interest in Kabanga Nickel Limited (KNL), which has majority ownership of the Kabanga nickel project in Tanzania. With this deal, Lifezone gains full ownership of KNL, which has an 84% stake in Tembo Nickel Corporation Limited (TNCL), the Tanzanian operating company for the project. The Government of Tanzania owns the remaining 16% of TNCL. Lifezone has also gained complete control of 100% of the offtake from the nickel project. Lifezone acquired the Kabanga project in 2021 and secured a licence to operate a multi-metal processing facility for nickel, copper and cobalt for the project in March last year. The deal terms include a $10m (£7.43m) fixed cash payment post-final investment decision (FID), a second deferred cash payment linked to Lifezone's share price after first commercial production, and a total consideration cap of $83m, reduced to $75m if independent verification via a Resettlement Action Plan Trigger Event occurs. BHP has agreed to a 12-month lock-up period on its Lifezone shares and must offer any intended share sales to Lifezone first. Lifezone CEO Chris Showalter said: 'This marks a significant milestone for Lifezone as we consolidate ownership of the Kabanga nickel project. BHP has been a supportive and value-adding partner whose investment has contributed to advancing the project, and their exit coincides with the project's transition into its next stage of development. 'Our focus remains on delivering a world-class, low-cost nickel project that benefits all stakeholders, including the Government of Tanzania and local communities.' Lifezone has engaged Standard Chartered Bank for short-term financing and strategic advisory services to support early construction works and progress towards the FID. Société Générale is advising on project financing, with interest from potential lenders including export credit agencies. Lifezone founder and chair Keith Liddell said: 'This transaction to own 100% of Kabanga Nickel Limited allows Lifezone to fully align our technical, commercial and ESG [environmental, social and governance] strategy as we advance Kabanga toward the final investment decision. We are committed to delivering the project responsibly and to creation of long-term value for all our stakeholders.' Furthermore, Lifezone has filed the Kabanga project feasibility study technical report summary, confirming its economic potential. The study establishes initial mineral reserves for the premier nickel sulphide project. The project has proven and probable mineral reserves totalling 52.2 million tonnes (mt), with Lifezone's share at 43.9mt, containing 1.98% nickel, 0.27% copper and 0.15% cobalt. With an 18-year operational lifespan, the mine is expected to maintain an annual production rate of 3.4mt. Overall production is projected to yield 902,000 tonnes (t) of nickel, 134,000t of copper and 69,000t of cobalt in intermediate product form across the mine's lifetime. Showalter added: 'With declared mineral reserves, robust economics and path to final investment decision 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.' "Lifezone Metals acquires BHP's stake in Tanzania nickel project" 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Lifezone Metals Consolidates Control of the World-Class Kabanga Nickel-Copper-Cobalt Sulfide Project
Acquires BHP's 17% Interest in Kabanga Nickel Ltd. via Deferred Consideration NEW YORK, July 18, 2025--(BUSINESS WIRE)--Lifezone Metals Limited's (NYSE: LZM) Founder and Chair, Keith Liddell, and Chief Executive Officer, Chris Showalter, today announced that Lifezone has completed a definitive agreement with BHP Billiton (UK) DDS Limited (BHP) to acquire BHP's 17% equity interest in Kabanga Nickel Limited (KNL), the majority owner of the Kabanga Nickel Project in northwestern Tanzania. As a result of the transaction, Lifezone 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 the Government of Tanzania. All existing agreements with BHP, including the T2 Option Agreement, have been terminated. Lifezone has assumed full control of 100% of the offtake from the Kabanga Nickel Project. Key terms of the transaction: FID Payment: A fixed cash payment of $10 million, payable within 30 days after the earlier of: (i) 12 months after the Final Investment Decision (FID) at Kabanga; or (ii) once Lifezone has raised $250 million in aggregate funding (whether through equity, debt or alternative sources). First Commercial Production Payment: A second deferred cash payment, payable within 30 days after the period of 12 months following the achievement of first commercial production. The amount is indexed to Lifezone's share price performance, with a reference share price of $4.16 per share and a reference amount of $28 million. An index factor of 0.7x applies – meaning that a 10% increase in Lifezone's share price results in a $1.96 million increase in the payment ($28 million x 10% x 0.7). Based on an illustrative price of $4.50 per share, the payment would total $30 million. Total consideration cap: Maximum of $83 million, or reduced to $75 million if the Resettlement Action Plan (RAP) Trigger Event occurs (see below). Lock-Up and Right of First Offer: BHP has agreed not to sell its Lifezone shares for 12 months post-completion. After this period, BHP must first offer any shares it intends to sell to Lifezone before potentially transferring them to third parties, subject to customary terms. Mr. Liddell stated: "This transaction to own 100% of Kabanga Nickel Limited allows Lifezone to fully align our technical, commercial, and ESG strategy as we advance Kabanga toward the Final Investment Decision. We are committed to delivering the project responsibly and to creation of long-term value for all our stakeholders." Mr. Showalter added: "This marks a significant milestone for Lifezone as we consolidate ownership of the Kabanga Nickel Project. BHP has been a supportive and value-adding partner whose investment has contributed to advancing the project, and their exit coincides with the project's transition into its next stage of development. Our focus remains on delivering a world-class, low-cost nickel project that benefits all stakeholders, including the Government of Tanzania and local communities." Ongoing strategic financing initiatives to advance to Final Investment Decision Standard Chartered Bank – Short-term financing and strategic advisory Lifezone has engaged Standard Chartered Bank as financial adviser to support the development of the Kabanga Nickel Project. A short-term development financing package is well advanced, to provide sufficient capital to undertake early works construction and Resettlement Action Plan activities and to progress through to Final Investment Decision, including proceeding to financial close of the multi-source project finance package. Lifezone is also in active discussions with several major, diversified counterparties regarding long-term strategic partnerships. Societe Generale – Project finance progress As announced on September 23, 2024 (refer to Lifezone's news release), Societe Generale is advising Lifezone on the project financing process. This includes potential support from the U.S. International Finance Corporation (DFC) through loans and risk insurance (refer to Lifezone's August 27, 2024 news release). The project financing process, which commenced well ahead of the release of the Kabanga Feasibility Study, is progressing well and meaningful interest has been received from potential lenders, including export credit agencies. These initiatives aim to deliver a capital structure aligned with Lifezone's growth ambitions and Kabanga's development timeline. While BHP's exit marks a transition, it also presents a unique opportunity to reshape the Kabanga ownership and financing strategy to suit Lifezone's aspiration of long-term value creation. The RAP Trigger Event and ESG alignment The RAP Trigger Event is defined as the independent verification that the project's Resettlement Action Plan has been developed and implemented in material alignment with the International Finance Corporation's Performance Standard 5 (IFC PS5). If confirmed within 12 months of completion, the total consideration payable to BHP will be reduced to a maximum of $75 million. If you would like to sign up for Lifezone Metals news alerts, please register here. Social Media LinkedIn | X | YouTube About Lifezone Metals Lifezone Metals (NYSE: LZM) is committed to delivering cleaner and more responsible metals production and recycling. Through the application of our Hydromet Technology, we offer the potential for lower energy consumption, lower emissions and lower cost metals production compared to traditional smelting. Our Kabanga Nickel Project in Tanzania is believed to be one of the world's largest and highest-grade undeveloped nickel sulfide deposits. By pairing it with our Hydromet Technology, we are working to unlock a new source of nickel, copper and cobalt for the global battery metals markets and to empower Tanzania to achieve in-country beneficiation. Through our US-based recycling partnership, we are working towards applying our Hydromet Technology to the recovery of platinum, palladium and rhodium from responsibly sourced spent automotive catalytic converters. Our process is expected to be cleaner and more efficient than conventional smelting and refining methods, supporting a circular economy for precious metals. Forward-Looking Statements Certain statements made herein are not historical facts but may be considered "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 regarding, amongst other things, the plans, strategies, intentions and prospects, both business and financial, of Lifezone Metals Limited and its subsidiaries. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, and any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements may be accompanied by words such as "believes," "estimates," "expects," "predicts," "projects," "forecasts," "may," "might," "will," "could," "should," "would," "seeks," "plans," "scheduled," "possible," "continue," "potential," "anticipates" or "intends" "or the negatives of these terms or variations of them or similar terminology or expressions that predict or indicate future events or trends or that are not statements of historical matters; provided that the absence of these does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding future events, the estimated or anticipated future results of Lifezone Metals, future opportunities for Lifezone Metals, including the efficacy of Lifezone Metals' hydrometallurgical technology (Hydromet Technology) and the development of, and processing of mineral resources at, the Kabanga Nickel Project, our approach to environmental stewardship, social responsibility, safety and governance (ESG), and other statements that are not historical facts. These statements are based on the current expectations of Lifezone Metals' management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Lifezone Metals and its subsidiaries. These statements are subject to a number of risks and uncertainties regarding Lifezone Metals' business, and actual results may differ materially. These risks and uncertainties include, but are not limited to: general economic, political and business conditions, including but not limited to economic and operational disruptions; global inflation and cost increases for materials and services; capital and operating costs varying significantly from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; changes in government regulations, legislation and rates of taxation; inflation; changes in exchange rates and the availability of foreign exchange; fluctuations in commodity prices; delays in the development of projects and other factors; the outcome of any legal proceedings that may be instituted against Lifezone Metals; our ability to obtain additional capital, including use of the debt market, future capital requirements and sources and uses of cash; the risks related to the rollout of Lifezone Metals' business, the efficacy of the Hydromet Technology, and the timing of expected business milestones; the acquisition of, maintenance of and protection of intellectual property; Lifezone's ability to achieve projections and anticipate uncertainties (including economic or geopolitical uncertainties) relating to our business, operations and financial performance, including: expectations with respect to financial and business performance, future operating results, financial projections and business metrics and any underlying assumptions; expectations regarding product and technology development and pipeline and market size; events relating to environmental issues, social responsibility, safety and/or governance matters, expectations regarding product and technology development and pipeline; future acquisitions, partnerships, or other relationships with third parties; maintaining key strategic relationships with partners and customers; the timing and significance of contractual relationships; the effects of competition on Lifezone Metals' business; the ability of Lifezone Metals to execute its growth strategy, the development and processing of the mineral resources at the Kabanga Nickel Project; manage growth profitably and retain its key employees; the ability of Lifezone Metals to reach and maintain profitability; enhancing future operating and financial results; complying with laws and regulations applicable to Lifezone Metals' business; Lifezone Metals' ability to continue to comply with applicable listing standards of the NYSE; our ability to comply with applicable laws and regulations, stay abreast of accounting standards, or modified or new laws and regulations applying to our business, including privacy regulation; and other risks that will be detailed from time to time in filings with the U.S. Securities and Exchange Commission (SEC); meeting future liquidity requirements and complying with restrictive covenants related to long-term indebtedness; and dealing effectively with litigation, complaints, and/or adverse publicity. The foregoing list of risk factors is not exhaustive. There may be additional risks that Lifezone Metals presently does not know or that Lifezone Metals currently believes are immaterial that could also cause actual results to differ from those contained in forward-looking statements. In addition, forward-looking statements provide Lifezone Metals' expectations, plans or forecasts of future events and views as of the date of this communication. Lifezone Metals anticipates that subsequent events and developments will cause Lifezone Metals' assessments to change. These forward-looking statements should not be relied upon as representing Lifezone Metals' assessments as of any date subsequent to the date of this communication. You should not place undue reliance on forward-looking statements in this communication, which are based upon information available to us as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. In all cases where historical performance is presented, please note that past performance is not a credible indicator of future results. Except as otherwise required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data, or methods, future events, or other changes after the date of this communication. View source version on Contacts Investor Relations – North America Evan YoungSVP: Investor Relations & Capital Investor Relations – EuropeIngo HofmaierChief Financial
