US-backed Orion eyes stake in giant Tanzania nickel mine

me-metals: Lifezone Metals (NYSE: LZM) has selected US government-backed consortium Orion CMC as its preferred partner to help develop Tanzania’s Kabanga nickel project, potentially marking one of the consortium’s first major critical minerals investments.

According to me-metals cited by mining.com, Citing people familiar with the matter, Bloomberg News said Orion CMC emerged as the preferred bidder after a competitive process run by Standard Chartered Plc.

Neither Lifezone nor Orion CMC has formally announced a transaction, and the size of the proposed investment has not been disclosed.

Lifezone CEO Chris Showalter said during the company’s earnings call last week that the company had selected a preferred partner from multiple bidders to make a strategic equity investment in Kabanga. While he did not identify the investor, people familiar with the matter told Bloomberg News it is Orion CMC.

“Discussions are in the final phase,” Showalter said after what he described as a “very competitive process” managed by Standard Chartered Plc.

The investment would advance development of one of the world’s largest high-grade nickel sulphide deposits at a time when governments are seeking new sources of battery and stainless-steel metals outside Indonesia and China.

Project advances

Lifezone estimates Kabanga will cost about $940 million to build and produce roughly 350,000 tonnes of nickel concentrate annually, along with copper and cobalt. A planned second-phase refinery would produce higher-value nickel sulphate.

The company has also appointed Société Générale SA to arrange project debt and expects to make a final investment decision early next year after negotiations with the Tanzanian government took longer than expected. Tanzania owns a 16% stake in the project.

Lifezone hired Standard Chartered about a year ago to find an equity partner after BHP (ASX: BHP) abandoned its option to take control of Kabanga and sold its minority interest.

Indonesia currently accounts for about 60% of global nickel production following a surge of Chinese-backed investment after Jakarta banned raw ore exports in 2020.

Orion CMC’s highest-profile proposed investment so far is a preliminary agreement announced in February to acquire a 40% stake in Glencore’s (LON: GLEN) majority interests in two major copper-cobalt mines in the Democratic Republic of Congo, although that transaction has yet to close.

The International Development Finance Corporation (DFC) said in June it would increase its investment in Orion CMC to expand US and allied access to critical minerals and reduce reliance on concentrated sources but did not disclose the amount.

Orion Resource Partners declined to comment, while the DFC did not respond to Bloomberg News’ requests for comment. The DFC has been involved with Kabanga since at least 2024, when it began due diligence on political risk insurance and expressed interest in providing project financing.

source: mining.com