BHP invests $50 million to advance nickel project in Tanzania

BHP will invest $40 million in Kabanga Nickel, which is developing the nickel project, and $10 million in Lifezone Ltd, whose ore refining technology is considered more cost-effective and environmentally friendly.

The investment in U.K.-based Kabanga will give it an 8.9 percent stake once approvals and conditions are met.

BHP has the option to invest another $50 million to increase its stake to 17.8%, which would value the project at $658 million.

The investment comes as global miners race to reduce emissions from their projects and harvest the supply of metals such as nickel, which are a key component of electric vehicles.

This investment ensures access to a world-class nickel sulfide resource and is aligned with BHP’s strategy of seizing opportunities in future commodities.

Kabanga anticipates first production in 2025, targeting a minimum annual nickel equivalent production of 65,000 tons.

Output will be ramped up to target a minimum annual production of 40,000 tons of nickel, 6,000 tons of copper and 3,000 tons of cobalt.