The world’s second-largest mining company, BHP Group (BHP), has invested $40 million in Tanzania’s nickel project owned by UK-based private company Kabanga Nickel.
It was initially owned by Canadian miner Barrick Gold and the commodities group Glencore.
Under the deal, BHP will invest $40m to accelerate the development of the Kabanga deposit and a further $10m in the hydrometallurgy refining process.
Subject to certain conditions and milestones being achieved, BHP will invest a further $50m, ( an 8.9 per cent equity) giving it an 18 per cent stake in Kabanga Nickel. That will value the project at about $650m.
In a statement, Kabianga said it seeks to raise funding for the project and plans to start operating in 2025.
“Output will ramp up to target a minimum annual production of 40,000 tonnes of nickel, 6,000 tonnes of copper and 3,000 tonnes of cobalt.”
According to Bloomberg, BHP Group sold its last mining asset in Africa — the rights to develop an iron ore deposit in Guinea — in 2019 as it focused on Australia, Canada and Chile.
Headquartered in Melbourne, Australia, BHP Group explores for, develops, and produces oil and gas properties, and mines for copper, silver, zinc, molybdenum, uranium, gold, iron ore, and metallurgical and energy coal.