In a major financial breakthrough for Tanzania’s mining and energy sectors, Lifezone Metals has secured a $60 million loan to advance the Kabanga Nickel Project, one of Africa’s most ambitious mineral ventures.
This funding injection marks a critical step in the rollout of the $2.49 billion project located in the northwestern region of Kabanga, near the Burundi border.
The project aims to tap into the region’s rich mineral deposits, primarily nickel, copper, and cobalt — metals that are crucial for the booming global battery and electric vehicle industries.
According to project projections, the Kabanga mine is expected to operate for at least 18 years, producing approximately 3.4 million tonnes annually of high-grade mineral concentrates.
These include, Nickel: used in electric vehicle batteries and stainless steel production.
Copper: a core component in electrical wiring and clean energy systems.
And Cobalt: vital for battery stability and energy density in EVs.
This scale of production positions Tanzania to play a central role in the global clean energy transition, while simultaneously driving industrialization and job creation domestically.
“The loan strengthens our ability to fast-track development and infrastructure work at Kabanga.
It signals growing investor confidence in Tanzania’s mining governance and long-term resource potential,” said a spokesperson for Lifezone Metals in a statement.
The Kabanga project is a public-private partnership involving Lifezone Metals, the Tanzanian government, and various international stakeholders. The venture is expected to, Create thousands of direct and indirect jobs, Inject significant revenue into government coffers through royalties and taxes, Attract further foreign direct investment in the region and Support the development of local supply chains and mining-related industries.
Additionally, Lifezone Metals plans to use hydrometallurgical technology — a cleaner and more efficient alternative to traditional smelting — to process the minerals locally.
This could make Tanzania one of the first African countries to produce refined battery-grade nickel domestically, increasing value addition and reducing export of raw materials.
While the loan is a positive milestone, analysts caution that the project’s long-term success depends on, Stable government policies, Effective local community engagement, Sustainable environmental practices and Efficient logistics infrastructure in the remote Kabanga area.
Still, the Kabanga Nickel Project is widely seen as a cornerstone of Tanzania’s vision to become a leading supplier of critical minerals in the global green economy.
