Lifezone Metals Tanzania has successfully extracted nickel, copper, and cobalt from the Kabanga nickel project, marking a significant milestone in developing this world-class resource. This achievement comes over four decades after the deposit’s initial discovery.
The company has produced cathode materials from concentrates derived from borehole core samples at its Kabanga plant. The process involved pilot-scale refinery testwork using a proprietary Hydromet technology at Lifezone’s Perth, Australia laboratory. This method is praised for its lower carbon footprint compared to traditional smelting.
“This is a testament to our commitment to innovation and bringing this exceptional resource to market,” said Lifezone CEO Chris Showalter. Mike Adams, chief technology officer, added, “The success of our hydrometallurgical techniques is evident in the pilot plant’s outstanding performance, closely aligning with our process models.”
Despite this breakthrough, Lifezone Metals’ share price decreased by 7% in New York, resulting in a market capitalisation of $634.5 million.
Kabanga is renowned as one of the world’s largest and highest-grade undeveloped nickel sulphide deposits. Extensive exploration and appraisal drilling, totalling over 583 km, have been conducted, with investments exceeding $293 million by previous owners Glencore and Barrick.
Lifezone acquired the project in 2021 and has since secured a mining license and partnered with global mining giant BHP. The deposit is estimated to hold 881,000 tonnes of nickel metal within a measured and indicated resource of 43.6 million tonnes, grading 2.02% nickel. Additionally, the inferred resource contains 391,000 tonnes of nickel metal.
Lifezone plans a two-phase development, including a Hydromet refinery in Kahama, Tanzania. The first phase aims to mine 1.7 million tonnes per year, with a similar increase in the second phase. A definitive feasibility study, scheduled for completion this quarter, will outline specific details.
This breakthrough positions Lifezone as a key player in the global nickel market and highlights the potential of Tanzania as a significant mining hub.