Lifezone Metals, which is backed by BHP Group and is developing a nickel mine in Tanzania, is negotiating supply deals with several electric vehicle manufacturers and battery makers as the race for energy transition metals heats up.
Company chief executive Chris Showalter was quoted by Reuters as saying that RBC Capital Markets' process for selling yet-to-be-produced metal from Lifezone's Kabanga Nickel project has piqued the interest of EV and battery companies, some of which have visited the mine site.
He refused to provide names and stated that no agreements had been reached.
Nickel, which is critical to the growth of electric vehicles, is used in lithium-ion batteries and assists vehicle manufacturers in using less cobalt.
Lifezone Metals, which owns the Kabanga nickel and cobalt mine and refinery in north-west Tanzania, is planning to list in New York this year through a blank-check acquisition deal valued at around $1 billion.
Lifezone could sell its share of output, equivalent to 40% of the metal produced at the facility, through the deals currently being discussed to help raise the capital it requires.
"Primarily what we are looking for is a prepayment structure," said Showalter.
"In our view this would replace the more traditional project finance portion of the project funding."
BHP currently owns a minority stake in Kabanga and has the option to increase its stake to 51% and become the mine's operator.
Showalter said that with BHP's support, there is the potential to expand on plans to produce approximately 60,000 tonnes of refined nickel, up from initial expectations of about 40,000 tonnes.
Mining is expected to begin around the end of 2026.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
Company chief executive Chris Showalter was quoted by Reuters as saying that RBC Capital Markets' process for selling yet-to-be-produced metal from Lifezone's Kabanga Nickel project has piqued the interest of EV and battery companies, some of which have visited the mine site.
He refused to provide names and stated that no agreements had been reached.
Nickel, which is critical to the growth of electric vehicles, is used in lithium-ion batteries and assists vehicle manufacturers in using less cobalt.
Lifezone Metals, which owns the Kabanga nickel and cobalt mine and refinery in north-west Tanzania, is planning to list in New York this year through a blank-check acquisition deal valued at around $1 billion.
Lifezone could sell its share of output, equivalent to 40% of the metal produced at the facility, through the deals currently being discussed to help raise the capital it requires.
"Primarily what we are looking for is a prepayment structure," said Showalter.
"In our view this would replace the more traditional project finance portion of the project funding."
BHP currently owns a minority stake in Kabanga and has the option to increase its stake to 51% and become the mine's operator.
Showalter said that with BHP's support, there is the potential to expand on plans to produce approximately 60,000 tonnes of refined nickel, up from initial expectations of about 40,000 tonnes.
Mining is expected to begin around the end of 2026.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
