Tanzania’s Kabanga nickel project is attracting growing international interest, with U.S.-backed investment firm Orion CMC reportedly considering an investment of around $500 million in the major mining project.
The potential investment, reported by Bloomberg and cited by Ecofin Agency, comes as Tanzania and project operator Lifezone Metals continue discussions over the project’s financial and ownership framework. The negotiations have progressed more slowly than expected, pushing the final investment decision to the first quarter of 2027.
Kabanga is estimated to require approximately $942 million in construction costs. Lifezone Metals controls 84% of the project, while the Tanzanian government holds a 16% stake under an agreement signed in 2021. The parties are discussing possible amendments covering the project’s development structure and distribution of financial benefits.
The project is considered strategically important because of its substantial deposits of critical minerals. According to its feasibility study, Kabanga is expected to produce approximately 902,000 tonnes of nickel, 134,000 tonnes of copper and 69,000 tonnes of cobalt over an 18-year mine life.
The development could generate around $14.1 billion in revenue over its operating period. Tanzania is expected to benefit through taxes, royalties, dividends and other economic contributions, although the eventual returns will depend on the final financial framework.
U.S. interest in Kabanga also reflects growing efforts to secure reliable supplies of critical minerals used in industries such as electric vehicle batteries and advanced technologies. The U.S. Development Finance Corporation has previously expressed interest in financing the project.
With negotiations continuing, the coming months will be important for determining the final investment structure, financing arrangements and Tanzania’s share of the economic benefits.
