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| Lifezone Metals |
Lifezone Condenses Kabanga Nickel Mine Strategy
Lifezone Metals will simplify its Kabanga nickel project in Tanzania to adapt to ongoing nickel price volatility. The company will pursue full-scale construction of a 3.4mn t/yr underground mine and concentrator rather than a phased approach. A hydromet demonstration plant in Kahama, 350km away, will precede a full-scale ecological refinery using hydrometallurgical technology.
Market Dynamics Prompt Strategic Shift
The decision to shift from phased development stems from weak global nickel prices and rising Indonesian supply. Nickel mine production dropped by 50,000t globally in 2024, while Indonesia increased output by 170,000t to 2.2mn t. Lifezone aims to complete a definitive feasibility study for Kabanga by mid-2025, reflecting the new plan.
Resource Update and PGM Recycling Focus
Measured and indicated resources at Kabanga rose 7.3pc to 46.8mn t, while inferred resources fell by 35.4pc. Grades remain strong: 2.09pc nickel, 0.29pc copper, and 0.16pc cobalt for measured and indicated resources. Meanwhile, Lifezone is advancing a joint venture with Glencore to recycle platinum group metals (PGMs) from catalytic converters in the US.
The Metalnomist Commentary
Lifezone’s pivot illustrates the real-time flexibility required by mining companies in a volatile nickel market. With oversupply pressuring prices, optimizing scale and timing becomes critical. Simultaneously, its investment in hydrometallurgical refining and PGM recycling reflects a strategic bet on sustainability and future-facing technologies.
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