A CONSORTIUM backed by the US government has emerged as the preferred candidate to invest in a major nickel project in Tanzania, said Bloomberg News.
Lifezone Metals, which has been searching for a partner to develop its Kabanga nickel deposit into a large underground mine, has selected Orion CMC from among several bidders, said the newswire citing people familiar with the deal.
The group was formed in October with sovereign backing from the US International Development Finance Corp. and Abu Dhabi’s L’imad Holding, and would mark one of its earliest investments since launching with $1.8bn in initial funding.
Lifezone CEO Chris Showalter said last week the firm had “selected a preferred partner” from multiple offers for a “strategic equity investment,” though he did not name Orion CMC publicly, said Bloomberg.
The size of the commitment has not been disclosed, with Showalter saying that talks were in their “final phase” following a process overseen by Standard Chartered. Lifezone declined to comment on the speculation but the potential involvement of the US in the project underlines President Donald Trump’s enthusiasm for acquiring critical mineral supply from across the globe.
Kabanga, described by Lifezone as one of the largest, highest-grade nickel sulfide deposits, is expected to cost about $940m to build and produce roughly 350,000 tons of nickel concentrate annually, alongside copper and cobalt. A final investment decision is expected early next year, with Tanzania, which holds a 16% stake in the project, negotiating terms more slowly than anticipated, said Bloomberg
Orion CMC’s most notable prior move was a preliminary February agreement to acquire 40% of Glencore’s stakes in two Congolese copper-cobalt mines, which has yet to close.
