Kabanga nickel project secures $60mn loan to advance development

Kabanga Nickel Project

The Kabanga nickel project will receive up to $60mn from Taurus Mining Finance. The Kabanga nickel project drew a first $20mn tranche on 29 August. The Kabanga nickel project aims to accelerate mine development and reach key milestones.

Funding structure and ownership

Lifezone Metals arranged a loan of up to $60mn with Taurus. Additional drawings depend on performance and milestone delivery. The company now owns 100% of Kabanga. BHP sold its prior 17% stake in July for up to $83mn. The facility supports mine construction and early works. It also strengthens working capital for long-lead items.

Revised plan and output profile

Lifezone updated the mine plan in April. The design targets a 3.4mn t/yr underground mine and concentrator. A July feasibility study outlines 902,000t nickel in concentrate over 18 years. The project also expects 134,000t copper and 69,000t cobalt in concentrate. The staged debt supports critical path activities. It also aligns cash flows with ramp-up timing.

Market context and strategic relevance

Global nickel markets face mixed signals. Battery demand grows, yet class-II supply weighs on prices. High-grade sulphide feed remains strategic for battery supply chains. Kabanga’s concentrate mix diversifies regional supply. The financing lowers execution risk. It also positions Lifezone for downstream partnerships.

The Metalnomist Commentary

Milestone-linked funding is prudent in a volatile nickel market. The ownership simplification post-BHP exit may speed decisions and offtake talks. Watch capex discipline and timetable risk as underground development advances.