BHP exits $2.5 billion Tanzania nickel project, partner Lifezone says
The NYSE-listed company will acquire BHP's 17% equity interest in Kabanga Nickel Limited (KNL), the majority owner of the Kabanga Nickel Project in northwestern Tanzania, Lifezone said in a filing late on Friday.
The company issued a report on Friday that put development costs for the project at $2.49 billion. It is expected to produce around 50,000 metric tons of nickel annually once fully ramped up, a process that will take six years including construction. A final investment decision on the project is due next year.
BHP had agreed in 2022 to make an investment of as much as $100 million in the nickel mine and processing facilities if certain conditions were met.
BHP did not respond immediately to a request for comment on why it had sold its stake in the project.
The divestment comes as BHP has since shifted its view on nickel on the back of a boom in output from Indonesia in recent years. It put its Australian Nickel West operations on care and maintenance last year due to a poor outlook for nickel prices and a decision on the future of those operations is due by early 2027.
As a result the transaction, Lifezone now owns 100% of KNL, which in turn holds an 84% interest in Tembo Nickel Corporation Limited (TNCL), the Tanzanian operating company for the Kabanga Nickel Project.
The remaining 16% of TNCL is held by Tanzania's government. All existing agreements with BHP have been terminated and Lifezone has also assumed full control of 100% of the offtake from the Kabanga Nickel Project, it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
15 minutes ago
- Reuters
Iberdrola hired Barclays to sell assets in Mexico for $4.70 billion, El Confidencial says
July 23 (Reuters) - Europe's largest utility Iberdrola ( opens new tab hired investment bank Barclays to sell 15 renewable power plants in Mexico to exit the country, Spanish news website El Confidencial reported on Wednesday, citing unnamed sources close to the operation. Iberdrola's assets are worth about 4 billion euros ($4.70 billion), El Confidencial said, adding that the utility seeks to sell on concerns about the legal and tax stability in the country. Iberdrola already sold 55% of its assets in the country to the Mexican government for $6 billion in 2024, which the Mexican government called at the time a "new nationalisation" of the electricity market. The deal was in large part designed to give Mexico's state-owned power company Comision Federal de Electricidad (CFE) majority control over the local power market. Iberdrola declined to comment, while Barclays did not immediately respond to a request for comment. ($1 = 0.8518 euros)
Reuters
15 minutes ago
- Reuters
Nigeria's Senate approves President Tinubu's $21 billion external borrowing plan
ABUJA, July 23 (Reuters) - Nigeria's Senate has approved President Bola Tinubu's plan for more than $21 billion in foreign borrowing to plug shortfalls in the 2025 budget, a senior lawmaker said late on Tuesday. Tinubu asked parliament to approve the borrowing in May. "With this approval we now have all revenue sources, including loans, in place to fully fund the budget," Solomon Adeola, Senate chair on appropriations, told reporters.
Reuters
15 minutes ago
- Reuters
Vodacom's first-quarter service revenue rises 11.4% on Egypt growth
JOHANNESBURG, July 23 (Reuters) - South Africa's biggest mobile operator Vodacom Group (VODJ.J), opens new tab reported a rise of 11.4% in first-quarter service revenue on Wednesday compared to the same period last year, supported by growth in Egypt and group financial services. Vodacom, majority-owned by Britain's Vodafone (VOD.L), opens new tab, said group service revenue rose to 32.3 billion rand ($1.84 billion)in the three months to June 30. On a normalised basis, group service revenue jumped 13.8%, tracking favourably against its medium-term target of double-digit growth, Vodacom said. Service revenue in Egypt grew at 43.8% in local currency, making it a star performer. The South Africa market delivered a 3% increase, supported by contracts, while Tanzania, Democratic Republic of Congo and Lesotho contributed significantly to normalised growth of 12.4% in its international business. Service revenue outside of mobile services, such as from fintech, was a key growth driver and contributed 6.9 billion rand in the quarter, equating to 21.4% of the group and was "well on track to reach our target contribution of 30% by 2030," Vodacom Group CEO Shameel Joosub said in a statement. Group financial services revenue of 3.9 billion rand was supported by strong growth from the insurance business in South Africa, "excellent" growth in Egypt of 44.3%, and a 17.4% increase from the international business on the back of improved performance in Mozambique, Joosub said. Including Kenya's Safaricom ( opens new tab, in which it owns a stake, Vodacom now processes $460 billion in mobile-wallet transaction value annually, he said. ($1 = 17.5463 rand)
