Modern metals company Lifezone Metals has received a multi-metal processing facility licence from the Tanzanian government to refine nickel, copper and cobalt from its Kabanga nickel project at Kahama, located beside gold miner Barrick Gold’s former Buzwagi gold mine.

The Kabanga nickel project is located in north-west Tanzania and, according to Lifezone, is believed to be one of the world’s largest and highest-grade undeveloped nickel sulfide deposits.

The Kahama multi-metal processing facility, to be known as the Kahama refinery, is located about 340 km southwest of Kabanga.

Through the application of Lifezone’s Hydromet technology, Kabanga and Kahama will be able to produce finished metals in-country, potentially reducing capital and operating costs, as well as reducing costs associated with transport of concentrate or other intermediate products.

Full in-country beneficiation will contribute towards local content optimisation and national development through the principle of equitable sharing of economic benefits.

Lifezone reports that its Hydromet technology is a “transformational” method of metals recovery that has the potential to replace smelting for base and precious metals refining.

Pyrometallurgical smelting is one of the biggest contributors to pollutive gas emissions, greenhouse gases and energy inefficiency in the production of metals products. Lifezone states that the use of Hydromet technology will help to unlock nickel, copper and cobalt from Kabanga, providing lower cost, lower emissions (relative to smelting) and traceable metals for electric vehicle batteries, as well as supporting the global energy transition.

The issuance of the Kahama refinery licence follows the formal gazetting of the Buzwagi Mining Area, within Kahama district in Shinyanga region, as a special economic zone (SEZ).

The Kahama refinery will be located within the SEZ, which will provide certain tax and other economic benefits for the project.

This industrial hub brings significant project execution and capital cost benefits, as well as turning a past-producing mine liability into a long-term asset, Lifezone says, though it notes that it will not be taking on any legacy liabilities in relation to the closure of the Buzwagi gold mine.

Meanwhile, a definitive feasibility study for the Kabanga nickel project remains on track for completion by the third quarter of this year.

Key Location

Lifezone’s subsidiary, Tembo Nickel Corporation, is the operating entity for Kabanga and Kahama, and is 16% owned by the government of Tanzania.

The Kahama refinery stands to benefit from access to a highly trained workforce and legacy infrastructure from the Buzwagi gold mine, including existing camp and office buildings, regional power connections, an airstrip, road connections and a railway line in close proximity.

“The ongoing level of commitment and support that we have received from the government of Tanzania in the advancement of our Kabanga nickel project is exemplary,” says Lifezone CEO Chris Showalter.

He adds that, with the receipt of the special mining licence, and now the licence for the Kahama refinery, the company has a clear path to delivering a direct-to-metal solution and enabling the production of nickel, copper and cobalt in Tanzania and by Tanzanians.

Tanzania Minerals Minister Anthony Mavunde says that the construction of a multi-metals refinery will be a solution to metals mining companies in-country that are forced to export concentrates to refineries abroad.

He urges miners who have been experiencing this challenge, to work closely with the government to ensure that everyone succeeds in ensuring full in-country beneficiation is achieved in the mining sector, by processing in-country and exporting finished products.

Additionally, Shinyanga regional commissioner Anamringi Macha says the investment into the multi-metals refinery will help change the face of the Kahama district and the Shinyanga region, by increasing formal and informal employment opportunities for citizens. “It is also another step in the history of Shinyanga region, where the mining sector has played a major role in the economic development of our region.”