AMERICA’S race to loosen China’s grip on critical minerals is zeroing in on Tanzania, where a US-backed investment vehicle is preparing to put roughly half a billion dollars behind one of Africa’s biggest undeveloped nickel projects, Bloomberg reported.
Orion CMC is negotiating an investment of about $500m to $600m in the Kabanga nickel project, after being selected by New York-listed Lifezone Metals as its preferred equity partner.
The consortium was established with backing from the US International Development Finance Corp (DFC) and Abu Dhabi’s L’imad Holding.
Under the proposed transaction, Orion CMC would acquire a sizable minority stake in Kabanga Nickel, while Lifezone would retain control. Tanzania currently owns 16% of the project company, with Lifezone holding the remainder.
The potential investment comes as Washington accelerates efforts to secure critical-mineral supply chains and reduce reliance on China.
Indonesia currently accounts for roughly 60% of global nickel supply, following substantial Chinese investment in its processing industry.
Orion CMC launched with $1.8bn in initial funding, while the DFC recently approved another $900m to support its expanding mining and minerals pipeline.
Kabanga could become an important new source of nickel for stainless steel and electric-vehicle batteries.
Lifezone estimates the mine will cost about $942m to build and has appointed Societe Generale to arrange project debt, with a final investment decision targeted for early next year.
