Lifezone Metals Files Initial Assessment for the Kabanga Nickel Project in Tanzania
Vertically Integrated Plan includes
Initial Assessment Proposes a 22-Year
Webcast with Technical Leadership Team at
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250602829321/en/
Figure 1:
Lifezone expects to complete the Kabanga Feasibility Study Technical Report Summary in
Initial Assessment Technical Report Summary highlights:
This Initial Assessment is preliminary in nature and the economic analysis includes Inferred Mineral Resources that are considered too speculative geologically to have modifying factors applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that this economic assessment will be realized.
- 22-year mine plan with a 3.4 million tonnes per annum underground mining operation with total production of 67.9 million tonnes grading 1.93% nickel, 0.26% copper and 0.14% cobalt.
- 3.4 million tonnes per annum concentrator, producing high-grade nickel, copper, and cobalt concentrate containing a total of 1.15 million tonnes of nickel, 171,000 tonnes of copper and 87,000 tonnes of cobalt.
- Hydrometallurgical refinery production design capacity of up to 50,000 tonnes per annum of nickel contained in battery-grade sulfate, up to 7,000 tonnes per annum of London Metal Exchange Grade A 99.99% copper cathode and up to 4,000 tonnes per annum of cobalt in sulfate.
-
Pre-production capital cost of
$991 million , which includes a contingency of 16.1%, with total mine plan revenue from sales estimated at approximately$23.68 billion and after-tax free cash flow of$8.03 billion . -
After-tax net present value of
$2.37 billion using an 8.0% discount rate and after-tax internal rate of return of 22.9%, based on flat metal prices of$8.49 per pound nickel,$4.30 per pound copper, and$18.31 per pound cobalt. -
Low all-in sustaining costs for refined nickel products averaging
$2.71 per pound, net of copper and cobalt by-product credits.
TUESDAY: Webcast with Lifezone’s technical leadership team at
The company invites shareholders, investors, and members of the media to join a virtual presentation and discussion of the key highlights of the Initial Assessment.
-
Date:
Tuesday, June 3, 2025 . -
Time:
10:00 AM Eastern Time . - Location: Virtual (please click the webcast registration link).
The presentation slides will be available on Lifezone’s website, and the webcast will be archived and accessible for replay for a limited time after the event.
Figure 1:
Figure 2: Overview of the Kabanga site camp.
Kabanga Nickel Project Initial Assessment overview
The Initial Assessment outlines a vertically integrated development plan for the
Nickel, copper and cobalt recoveries are expected to average 87.3%, 95.7% and 89.6%, respectively, through conventional froth flotation. The resulting 17.3% nickel-rich concentrate, containing low levels of deleterious elements, will be exported during the first five years of operation and prior to the commissioning of the Kahama hydrometallurgical refinery. The refinery has a designed production capacity of 50,000 tonnes per annum of nickel as battery-grade nickel sulfate, 7,000 tonnes per annum of London Metal Exchange Grade A 99.99% copper cathode and 4,000 tonnes per annum of cobalt as cobalt sulfate.
The Initial Assessment contemplates pre-production capital expenditures of
The project economics made use of long-term consensus metal prices. With the metal price assumptions of
Table 1: Summary of the Initial Assessment Results.
|
|
|
| Mine Plan |
22 years |
| Total |
67.9 Mt |
| Nameplate Mill Throughput |
3.4 Mtpa |
| Average |
1.93% |
| Average Copper Feed Grade |
0.26% |
| Average Cobalt Feed Grade |
0.14% |
| Average Nickel Recovery |
87.3% |
| Average Copper Recovery |
95.7% |
| Average Cobalt Recovery |
89.6% |
| Total Concentrate Produced |
7,263 kt wet |
| Average Nickel Concentrate Grade |
17.3% |
| Moisture Content of Concentrate |
9.0% |
| Total Nickel Production (in concentrate) |
1,146 kt |
| Total Copper Production (in concentrate) |
171 kt |
| Total Cobalt Production (in concentrate) |
87 kt |
|
|
|
| Average Nickel Refinery Recovery |
97.2% |
| Average Copper Refinery Recovery |
93.0% |
| Average Cobalt Refinery Recovery |
97.7% |
| Total Nickel Sulfate Produced |
3,419 kt |
| Total Copper Cathode Produced |
110 kt |
| Total Cobalt Sulfate Produced |
272 kt |
| Operating Costs |
|
| Mining |
|
| Concentrator and Infrastructure |
|
|
|
|
| Owner’s Cost, Administration and Overhead Costs |
|
| Total Operating Costs |
|
| All-In Sustaining Costs |
|
| Mining |
|
| Concentrator |
|
| G&A |
|
|
|
|
| Refinery - Kahama, Transport and Insurance |
|
| Total Cash Cost (before by-product credits) |
|
| Royalties |
|
| Sustaining Capital Expenditures |
|
| All-In Sustaining Costs (before by-product credits) |
|
| Copper By-Product Credit |
- |
| Cobalt By-Product Credit |
- |
| Total All-In Sustaining Costs |
|
| Capital Expenditures |
|
| Pre-Production Capex |
|
| Capitalized Opex |
|
| Growth Capex |
|
| Sustaining Capex (incl. Closure) |
|
| Valuation Metrics |
|
| Flat-Lined |
|
| Flat-Lined Copper Price |
|
| Flat-Lined Cobalt Price |
|
| Discount Rate |
8.0% |
| After-Tax Net Present Value |
|
| After-Tax Internal Rate of Return |
22.9% |
| Payback Period from Final Investment Decision (incl. 2.5-year construction period) |
9.8 years |
| Capital Efficiency (NPV/Pre-Production Capex incl. Capitalized Opex) |
2.1 |
| Capital Efficiency (NPV/Pre-Production + Growth Capex) |
1.3 |
Table 2: Kabanga Mineral Resource Estimates3 as at
| Mineral Resource Classification |
Lifezone Tonnage3 |
Grades (%) | Recovery (%) | |||||
| (million tonnes) | NiEq24 | Nickel | Copper | Cobalt | Nickel | Copper | Cobalt | |
| MINERAL RESOURCE ALL ZONES – Massive Sulfide plus Ultramafic | ||||||||
| Measured |
15.9 |
2.48 |
1.95 |
0.26 |
0.16 |
82.7 |
92.0 |
85.4 |
| Indicated |
31.0 |
2.69 |
2.16 |
0.30 |
0.16 |
82.9 |
92.6 |
85.3 |
| Measured + Indicated |
46.8 |
2.62 |
2.09 |
0.29 |
0.16 |
82.8 |
92.4 |
85.3 |
| Inferred |
11.3 |
2.59 |
2.08 |
0.28 |
0.15 |
83.7 |
93.7 |
86.5 |
|
1. |
This table reports the Mineral Resources for the combined massive sulfide and ultramafic mineralization types. |
||
|
2. |
There are no Mineral Reserves to report as at date of this Initial Assessment Technical Report Summary. |
||
|
3. |
Mineral Resources are reported showing only the Lifezone-attributable tonnage portion, which is 69.713% of the total. |
||
|
4. |
Cut-off applies to NiEq24, which is derived using a nickel price of |
||
|
5. |
NiEq24 formulae are: MSSX NiEq24 = Ni + (Cu x 0.454) + (Co x 2.497); UMAF NiEq24 = Ni + (Cu x 0.547) + (Co x 2.480). |
||
|
6. |
The point of reference for Mineral Resources is the point of feed into a concentrator. |
||
|
7. |
All Mineral Resources in the 2024 Mineral Resource Update were assessed for reasonable prospects for economic extraction by reporting only material above cut-off grades of: MSSX NiEq24>0.73% and UMAF NiEq24>0.77%. |
||
|
8. |
Totals may vary due to rounding. |
The Initial Assessment is based on the
For a discussion of Lifezone’s Framework Agreement with the
The Initial Assessment is preliminary in nature and includes economic analyses that incorporate Inferred Mineral Resources, which are considered too speculative geologically to be classified as Mineral Reserves. There is no certainty that the results of the Initial Assessment will be realized.
For a scenario excluding Inferred Mineral Resources, the Initial Assessment estimates an after-tax net present value (8.0%) of
The capital cost, operating cost and sustaining capital cost estimates were prepared for the project as part of the Initial Assessment. The estimates are classified as being at an
Figure 3: Production schedule with Measured, Indicated and Inferred Mineral Resources.
The Initial Assessment also outlines a sustainable tailings management strategy in line with Global Industry Standard on
Robust Initial Assessment economics for a globally significant source of nickel, copper and cobalt
A preliminary mine design, accessing Measured and Indicated Mineral Resources as well as Inferred Mineral Resources, outlines a 22-year mine plan for the project, with total underground production of 67.9 million tonnes grading 1.93% nickel, 0.26% copper and 0.14% cobalt. During the first five years of operation, the project will export a high-grade nickel-copper-cobalt concentrate while the hydrometallurgical refinery at Kahama is being developed. Once operational, the refinery will promote in-country beneficiation by producing battery-grade nickel and cobalt sulfate products and
Total operating costs are projected to average approximately
Pre-production capital expenditures are estimated at
Figure 4: Estimated project cash flows.
The project economics made use of long-term consensus metal prices. Metal price assumptions, of
The Initial Assessment also demonstrates strong downside resilience to nickel price fluctuation. Applying a sensitivity analysis at
Figure 5: Sensitivity analysis of after-tax net present value (8%).
Phased underground mine development enhances capital efficiency and operational readiness
The Initial Assessment outlines a phased underground mine development strategy at Kabanga, designed to optimize capital efficiency and support an achievable production ramp-up. The mine will be accessed via declines from two boxcuts at the North and Tembo zones. Kima zone will share access from the North decline, while the Main and MNB zones are accessed via the
Figure 6: Proposed mine design.
Mining will be conducted using longhole stoping with paste backfill, with level spacing of 25 meters and stope strike lengths ranging from 20 to 30 meters. The mining sequence prioritizes the high-grade portions of the North zone. The North and Kima zones are expected to supply approximately 65% of the total mineralized material, followed by Tembo (25%) and Main and MNB (10%). The mine design incorporates detailed geotechnical modeling, ventilation planning, and a robust backfill system to ensure safe and efficient operations.
The development schedule includes a 2.5-year construction period followed by a 2.5-year ramp-up phase, during which critical infrastructure such as ventilation raises, pumping systems, and underground services will be established. The first five years of mining will be executed by a contract mining firm selected through a competitive tender process, ensuring experienced execution and cost control during the early stages of operation.
Figure 7: Proposed mine design sequence (in years).
Further Exploration Targets offer significant upside potential
The Initial Assessment Technical Report Summary also discloses an overall Exploration Target of 17.5 to 23.5 million tonnes grading 1.9% to 2.1% nickel equivalent from four high-priority Exploration Targets within the Special
The ranges of potential tonnage and grade of the Exploration Targets are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for these target areas. It is uncertain if further exploration will result in the estimation of a Mineral Resource.
Table 3: Exploration Target summary.
| Exploration Target |
Mineralization Type |
Estimated Tonnage (Mt) |
Estimated Grade (NiEq24%) |
| Safari Link | Ultramafic | 1.5 - 2.0 | 1.2 - 1.4% |
| Massive Sulfide | 3.0 - 3.5 | 2.5 - 2.8% | |
| Total | 4.5 - 5.5 | 2.1 - 2.3% | |
| Safari Extension | Massive Sulfide plus Ultramafic | 3.0 - 4.0 | 1.8 - 2.0% |
| Rubona Hill | Ultramafic | 8.0 - 10.0 | 1.8 - 2.0% |
| Block 1 South | Ultramafic | 2.0 - 4.0 | 1.8 - 2.0% |
| Total All |
- |
17.5 - 23.5 | 1.9 - 2.1% |
Lifezone has allocated a portion of the growth capital expenditures to support drilling and geophysical surveys across these targets, with the aim of delineating additional resources and supporting potential future expansions.
Figure 8: Location of Safari Link and Safari Extension exploration targets with airborne Versatile Time-Domain Electromagnetic background and interpreted major faults.
Efficient sulfide concentrate production with high recoveries at the Kabanga concentrator
The Initial Assessment outlines a conventional concentrator facility at Kabanga, designed to process 3.4 million tonnes per annum and produce a high-grade nickel-copper-cobalt concentrate. The flowsheet, comprising crushing, wet grinding, flotation and dewatering, has been developed through extensive metallurgical testwork to suit the deposit’s mineralogy, including massive sulfide, semi-massive sulfide and ultramafic-hosted zones.
The concentrator is expected to achieve average metallurgical recoveries of 87.3% for nickel, 95.7% for copper and 89.7% for cobalt. The resulting concentrate, grading approximately 17.3% nickel, 2.6% copper and 1.3% cobalt, is low in deleterious elements and well-suited for downstream refining.
The high-grade, low-impurity nature of Kabanga’s concentrate has received strong interest from potential offtake partners for both nickel concentrate and refined battery-grade products. Indicative, non-binding terms have been obtained for 100% of the concentrate produced during the first five years of operations, prior to the commissioning of the
High recoveries of battery-grade metals enabled by hydrometallurgical refining at Kahama
The Initial Assessment includes the
Designed to process concentrate from the Kabanga mine, the refinery is expected to achieve average metal recoveries from concentrate of 97.2% for nickel, 93.0% for copper and 97.7% for cobalt. The flowsheet incorporates pressure oxidation, neutralization, solvent extraction, electrowinning and crystallization, enabling the designed production of approximately 50,000 tonnes per annum of nickel as nickel sulfate, 7,000 tonnes of copper cathode and 4,000 tonnes of cobalt as cobalt sulfate. All products are expected to meet stringent purity standards for use in electric vehicle batteries.
Figure 9: Allocated refinery site at Kahama.
Strategically located within Tanzania’s
Integrated logistics network strengthened by national infrastructure upgrades
Once the
Recent national infrastructure investments, including the
Figure 10:
Strong ESG credentials aligned with global best practices
The Project also seeks alignment with leading international ESG frameworks. These include the International Finance Corporation Performance Standards, Equator Principles, Global Industry Standard on Tailings Management and guidelines issued by the and
Comprehensive Environmental and Social Impact Assessments have been completed and approved by Tanzania’s
A Resettlement Action Plan, aligned with International Finance Corporation Performance Standard 5, ensures fair and sustainable relocation for affected communities, with 96% of the required cash compensation already paid, allowing access to the Project footprint as required.
Catalyzing economic growth and industrial development in
The Framework Agreement with the
Next steps and strategic recommendations
As one of the world’s largest undeveloped high-grade nickel sulfide deposits, the
With the Initial Assessment complete, the project will advance to the completion of a Feasibility Study for the underground mine and concentrator, supported by a Mineral Reserve Statement. The target for completion of the Feasibility Study is
To support the Kabanga project development, Lifezone is pursuing a diversified funding strategy that includes a mix of equity, strategic partnerships, and project-level debt. Discussions are ongoing with development finance institutions, commercial lenders, and potential strategic investors. The project’s attractive economics, low operating costs and alignment with global critical minerals priorities position Kabanga as a compelling candidate for sustainable financing. Lifezone expects to finalize the funding package following completion of the Feasibility Study.
Qualified Persons
The “Initial Assessment – Technical Report Summary Kabanga Nickel Project” is dated
DRA is a third-party firm comprising mining experts in their respective fields in accordance with 17 CFR § 229.1302(b)(1). Lifezone has determined that the appointed consultants meet the qualifications specified under the definition of QP in 17 CFR § 229.1300.
The Initial Assessment Technical Report Summary includes relevant information regarding the assumptions, parameters and methods of the Initial Assessment on the
If you would like to sign up for
Social Media
About
Our
Through our US-based recycling partnership, we are working to demonstrate that our Hydromet Technology can process and recover platinum, palladium and rhodium from responsibly sourced spent automotive catalytic converters. Our process is expected to be cleaner and more efficient than conventional smelting and refining methods, enabling the circular economy for precious metals.
Forward-Looking Statements
Certain statements made herein are not historical facts but may be considered “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the “safe harbor” provisions under the Private Securities Litigation Reform Act of 1995 regarding, amongst other things, the plans, strategies, intentions and prospects, both business and financial, of
Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, and any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements may be accompanied by words such as “believes,” “estimates,” “expects,” “predicts,” “projects,” “forecasts,” “may,” “might,” “will,” “could,” “should,” “would,” “seeks,” “plans,” “scheduled,” “possible,” “continue,” “potential,” “anticipates” or “intends” “or the negatives of these terms or variations of them or similar terminology or expressions that predict or indicate future events or trends or that are not statements of historical matters; provided that the absence of these does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding future events, the estimated or anticipated future results of
These statements are based on the current expectations of Lifezone Metals’ management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of
The foregoing list of risk factors is not exhaustive. There may be additional risks that
These forward-looking statements should not be relied upon as representing Lifezone Metals’ assessments as of any date subsequent to the date of this communication. You should not place undue reliance on forward-looking statements in this communication, which are based upon information available to us as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. In all cases where historical performance is presented, please note that past performance is not a credible indicator of future results.
Except as otherwise required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data, or methods, future events, or other changes after the date of this communication.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250602829321/en/
Investor Relations –
SVP: Investor Relations & Capital Markets
evan.young@lifezonemetals.com
Investor Relations –
Chief Financial Officer
ingo.hofmaier@lifezonemetals.com
Source:
