By A Special Correspondent
Lifezone Metals has launched a US$15 million direct share offering to accelerate progress at its flagship Kabanga Nickel Project in Ngara District.
The project in Kagera Region, which is operated through Tembo Nickel Corporation Limited (TNCL), is one of the world’s most promising undeveloped nickel sulphide deposits.
TNCL is 84 percent owned by Kabanga Nickel Limited (KNL), with the remaining 16 percent held by the government. Through its subsidiaries, Lifezone Metals now owns 100 percent of KNL, after acquiring BHP’s 17 percent stake in the project in July 2025.
Final Investment Decision (FID)
The capital raise, announced recently by the American company marks another strategic step toward advancing the project to a final investment decision (FID) expected by mid-2026.
The fresh equity infusion follows closely on the heels of a US$60 million financing agreement with Taurus Mining Finance, underscoring strong institutional confidence in both Lifezone Metals and the long-term viability of Kabanga.
Together, these funding initiatives are designed to sustain ongoing project development, strengthen the company’s balance sheet, and ensure momentum toward construction readiness.
The mine’s lifespan
According to the company, proceeds from the share offering will support additional exploration and on-the-ground technical work at Kabanga, aimed at refining project economics and preparing for the next phase of development.
A revised feasibility study released earlier this year projects that Kabanga could produce about 902,000 tonnes of nickel over an 18-year mine life, supplemented by valuable copper and cobalt by-products.
Development of the project is estimated to require a total investment of US$942 million, positioning Kabanga as one of the most substantial capital undertakings in Tanzania’s modern mining history.
In July, Lifezone Metals moved to acquire BHP’s stake in the project – an important milestone that consolidates ownership and is expected to streamline decision-making.
Volatile nickel prices
“This transaction will allow us to strengthen our position on one of the most promising nickel deposits in Africa,” the company said at the time.
The latest fundraising arrives during a challenging period for the global nickel market, with prices down roughly 60 percent since 2022 due to oversupply pressures. Futures have recently hovered near US$15,000 per tonne, according to Trading Economics.
Nevertheless, Lifezone maintains a long-term strategic view, noting that high-grade nickel is essential for the accelerating global energy transition, particularly in battery manufacturing and electric mobility supply chains.
What this means for the company and the mining industry
For Lifezone Metals, the successful raising of new capital in a depressed commodity price environment reinforces its credibility and ability to attract investment even under tough market conditions
It positions the company as a serious emerging player in the global battery metals space – especially as the world looks to secure stable, ESG-compliant sources of critical minerals.
For the mining industry, Kabanga represents a rare Tier-1 nickel deposit with the potential to support future supply gaps as demand rebounds. Its success could set a new benchmark for responsible mining and mineral processing in East Africa, especially given Lifezone’s focus on innovative, lower-emission technologies.
Economic significance for Tanzania
At the national level, Kabanga is poised to become a transformative project for Tanzania’s economy. Beyond direct investment approaching US$1 billion, the mine is expected to generate thousands of jobs – both during construction and operation – while stimulating local supply chains, infrastructure development, and skills transfer.
The government’s 16 percent free-carried interest, secured through a joint venture arrangement, positions Tanzania to benefit from long-term revenue streams, including royalties, dividends, and taxes. Successful advancement of Kabanga could further elevate the country’s standing as a competitive destination for large-scale mining investment. As Lifezone Metals moves toward permitting and final approvals, Kabanga is emerging not only as a cornerstone project for the company but also as a potentially transformative asset for Tanzania’s mining sector and broader economic development.
HIGHLIGHTS
- Lifezone Metals launched a U$15 million share offering after securing a US$60 million loan from Taurus Mining Finance.
- The Kabanga project, expected to produce 902,000 tonnes of nickel over 18 years, requires US$942 million in total investment.
Lifezone recently agreed to buy BHP’s stake in Kabanga, strengthening its control amid a weak nickel market.
