Local subsidiary Tembo Nickel has the potential to set the stage for Tanzanian mining
DAR ES SALAAM, 13 December 2022 – Tanzania’s mining industry took centre stage at the New York Stock Exchange (NYSE) today when Tembo Nickel Corporation Limited’s (“Tembo Nickel”) ultimate parent company, Lifezone Metals (“Lifezone Metals” or “Lifezone”), announced its plan to list on the world’s largest stock exchange. The listing will follow the completion of a series of transactions. The transactions will not mean change of control for Tembo Nickel.
Tembo Nickel is the local subsidiary of Lifezone Metals, a company created to unlock the Kabanga nickel project, using a cleaner processing technology called hydromet. Lifezone Metal’s hydrometallurgical or “hydromet” green-processing technology has the potential to produce cleaner metals to support growing demand for batteries used in electric vehicles (EVs) and fuel cell vehicles (FCVs).
Lifezone believes that the transaction announced today has the potential to position Tanzania at the forefront of the clean energy transition. By accessing the largest pool of funding in the world via the NYSE, the transaction will help Tembo Nickel advance the development of the Kabanga nickel project and progress towards construction and production over the coming years.
The Kabanga mine and hydromet technology are expected to produce refined high-grade nickel, LME Grade A copper cathode and cobalt. Lifezone believes this will make an important contribution to the clean energy transition and to combatting climate change.
Lifezone will work with the Government of Tanzania and BHP Billiton DDS Limited (“BHP”), a leading global resources company, in the Tembo Nickel partnership. Tembo Nickel is an operating company formed by a Framework Agreement between Kabanga Nickel Limited (“Kabanga Nickel”), a subsidiary of Lifezone, and the Government of Tanzania. Under the Agreement, Tembo Nickel (owned 84% by Kabanga Nickel and 16% by the Government of Tanzania) was established to mine, process and refine nickel with cobalt and copper co-products.
These stakeholders will equitably share the key benefits of the Kabanga project including revenue, infrastructure, skills creation and employment. The project has the potential to reshape the Tanzanian economy, both domestically and in the region.
Metals production from Tembo Nickel will take place entirely in Tanzania. Lifezone therefore expects the benefits from the project to be retained in the country. Ore will be mined and produce a rich concentrate at Kabanga. This will then be transported to Kahama, where it will be processed using hydromet to produce finished metal, ready to be used around the world.
The project aims to maximize use of renewable energy to the mine and refinery sites. Lifezone believes that the Kabanga mine and its processing plant have the potential to be one of the lowest cost, greenest metals production facilities in the world.
Hon. Dr. Doto Mashaka Biteko(MP), Minister Of Minerals, United Republic of Tanzania said: “We are proud to stand together with our partners in Tembo Nickel on this momentous occasion. The advancement of Lifezone Metals towards a listed company means local subsidiary Tembo Nickel has the potential to set the stage for Tanzanian mining and confirms the country is open for business. We welcome private sector investment that is centred on shared returns and mutual economic and social benefits. We believe Tembo Nickel will be a key vehicle supporting Tanzania’s status as an emerging leader in the clean energy transition. As we work towards the socio-economic development goals of Agenda 2030, partnerships like Tembo Nickel will be key to unlocking the rich potential that our sovereign resource wealth represents.”
Lifezone Metals Founder and Chair, Keith Liddell said: “As the world shifts towards electric vehicles, Lifezone, with the Tembo Nickel partnership, aims to prove that greener, more affordable solutions for the energy transition are indeed possible. Automakers have repeatedly stated that the battery metals they use have to be low-carbon. As we continue to press forward with project development, we will maintain our commitment to employing and developing local talent, sharing the value we create with the people of Tanzania, and building an effective and lasting partnership with this great country.”
Benedict Busunzu, Country Manager of Tembo Nickel said: “We believe that the Kabanga nickel project is a project of national importance for the country, and its success will be key to attracting further foreign direct investment. Our innovative model allows us to focus attention solely on Tanzania, enhancing our ability to work with local stakeholders and incorporate newer technology and methodology into our operations here. We are concentrating on delivering the many benefits that we expect the Kabanga nickel project will create for Tanzania, including revenue, infrastructure, employment and skills development.”
About Kabanga Nickel, jobs.
The Kabanga Nickel Project will create skilled and technical jobs and provide high standards of community support for the local communities around the project area in the Ngara District and elsewhere. The creation of as many as 900 new jobs is anticipated ultimately at the mine site as we near peak construction, in addition to over 270 new jobs anticipated ultimately at the hydromet refinery.
About Lifezone, nickel supply.
Lifezone believes it is poised to become a major supply chain solution to automakers to help meet global battery demand. Nickel is a key component for batteries, making up 31% of the carbon budget in an EV battery(2). According to the Nickel Institute(3), nickel represents up to 80% of battery’s active material, and the World Economic Forum(4) states demand for high-purity Class 1 nickel will increase by a factor of 24 in 2030 compared to 2018 levels, putting the market under pressure in the next few years.
What is today’s news?
Today Tembo Nickel’s ultimate parent company, Lifezone Metals, announced it is proposing to complete a series of transactions resulting in its listing on the New York Stock Exchange.
What does it mean for Tembo Nickel and the Kabanga Nickel project?
Lifezone Metals believes this will be a step forward in bringing the Kabanga Nickel project into production. As a major foreign investor in Tanzania, the project is expected to be a significant contributor to the country’s growth and development.
The most important news is that Lifezone Metals anticipates having access to one of the largest sources of funds in the world through its proposed listing, which can help further progress and build the Kabanga Nickel project.
What are the changes?
It is important to note that the proposed listing will not result in a change of control in Tembo Nickel. The management and daily operations of the company are expected to remain the same.
Who is Lifezone Metals?
Lifezone Metals is a modern metals company. It is the ultimate parent company of Tembo Nickel, and it has metals expertise that will support Tembo Nickel in building the Kabanga Nickel project.
Lifezone Metals consists of Kabanga Nickel Limited, or “Kabanga Nickel”, and Lifezone Limited.
Lifezone Metals believes that the combination of these two entities makes Kabanga Nickel a powerful force to champion Tanzania’s mining industry to the region and to the world.
Where can I get more information?
(1) Nickel Class 1 downstream processing CO2 eq. emissions baseline from 2020 Nickel Institute LCA. Estimated Kabanga refinery expected emissions from internal Company analysis.
(2) Source: Tesla 2021 Impact report. CO2e Contribution from Materials and Processes within Nickel-Based Battery Supply Chain, Page 104. Tesla 2021 Impact Report
(3) Nickel Energizing Batteries, Published by the Nickel Institute 2021-review-ni_energizing-batteries-v3.pdf (nickelinstitute.org)
(4) A Vision for a Sustainable Battery Value Chain in 2030, published by the World Economic Forum WEF_A_Vision_for_a_Sustainable_Battery_Value_Chain_in_2030_Report.pdf (weforum.org)