US-Backed Group Favored as Investor in Tanzania Nickel Project

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUS-Backed Group Favored as Investor in Tanzania Nickel ProjectA US government-backed consortium has been picked as the favored candidate to invest in a large nickel project in Tanzania, as the Trump administration looks to fund new supplies of key metals.Author of the article:William Clowes, Joe Deaux and Thomas Biesheuvel You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — A US government-backed consortium has been picked as the favored candidate to invest in a large nickel project in Tanzania, as the Trump administration looks to fund new supplies of key metals.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountLifezone Metals Ltd., which has been seeking a partner to help the firm transform the Kabanga nickel deposit into a major underground mine, has chosen Orion CMC from among the interested parties, according to people familiar with the matter. That group was established in October with sovereign backing from the US International Development Finance Corp. and Abu Dhabi’s L’imad Holding.If a deal goes ahead, it will mark one of the earliest investments by Orion CMC, which was set up as a tool in the US push to secure minerals deals around the world, with initial funding of $1.8 billion. The US has prioritized efforts to shore up access to critical metals and reduce dependence on China for supplies.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe transaction would also be a crucial step in the development of a significant new source of nickel, which is mainly used to manufacture stainless steel but also electric-vehicle batteries.Lifezone Chief Executive Officer Chris Showalter said last week that the firm had “selected a preferred partner” from multiple offers to make a “strategic equity investment” in Kabanga. While the CEO didn’t name the group, he was referring to Orion CMC, the people familiar said, asking not to be named discussing confidential information.The people didn’t specify the size of the consortium’s financial commitment to Kabanga Nickel Ltd., the Lifezone unit undertaking the project. Showalter said on July 29 that “discussions are in the final phase,” following a “very competitive process” overseen by Standard Chartered Plc.A spokesperson for Lifezone said the company doesn’t comment on market speculation.Lifezone has said that Kabanga – which it describes as “one of the largest and highest-grade nickel sulfide deposits” – will cost about $940 million to build and produce around 350,000 tons of nickel concentrate a year, as well as copper and cobalt. A refinery developed in a second phase would export higher value nickel sulfate.The New York-listed firm, which has recruited Societe Generale SA to raise debt, expects to reach a final investment decision early next year as negotiations with the Tanzanian government have progressed more slowly than anticipated. The East African nation – already a significant gold producer but keen to expand in energy transition minerals such as graphite and copper – also owns a 16% stake in Kabanga.Lifezone hired Standard Chartered to find an investment partner about a year ago after the world’s biggest miner BHP Group terminated an option to acquire control of the project and disposed of its minority shareholding in Kabanga.Indonesia dominates nickel production, accounting for about 60% of global supply after a wave of investment by Chinese smelting firms that followed a ban on exports of raw ore in 2020.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Orion CMC’s most high-profile potential investment to date is a preliminary agreement announced in February to acquire 40% of Glencore Plc’s majority interests in two large copper-cobalt mines in the Democratic Republic of Congo. That deal is yet to close.The consortium is led by Orion Resource Partners LP, a leading global investment firm specializing in metals and mining. The DFC said in June the government agency was increasing its investment in Orion CMC to “expand US and allied access to vital minerals” and “reduce dangerous overreliance on concentrated sources.” It didn’t say how much more money would be made available.Orion Resource Partners declined to comment, while the DFC didn’t respond to questions from Bloomberg News.The DFC has been involved with the Tanzanian asset since at least 2024, when it began due diligence on providing political risk insurance and expressed interest in extending loans to the project.Sign up here for the daily Next Africa newsletter and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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