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Lifezone Metals secures $60M loan for Tanzania’s Kabanga Nickel Project
What you need to know:
- The $2.49 billion initiative promises substantial returns, with an 18-year mine life projected to yield 3.4 million tonnes annually of high-grade nickel, copper, and cobalt, metals vital for global battery manufacturing and Tanzania’s industrial growth.
Dar es Salaam. The highly anticipated Kabanga Nickel Project in Tanzania has received a major financial boost, with UK mining firm Lifezone Metals securing a $60 million loan from Australian investment company Taurus Mining Finance Fund.
According to the firm, the loan will support initial groundwork, including site preparation and infrastructure enhancements, crucial steps toward a final investment decision expected by mid-2026.
The $2.49 billion initiative promises substantial returns, with an 18-year mine life projected to yield 3.4 million tonnes annually of high-grade nickel, copper, and cobalt, metals vital for global battery manufacturing and Tanzania’s industrial growth.
This milestone follows years of strategic developments, with The Citizen reporting in July 2025 on Lifezone’s acquisition of a 17 percent stake from BHP for $83 million.
The move consolidates its 100 percent ownership of Kabanga Nickel Limited, which holds an 84 percent interest in the project alongside the Tanzanian government’s 16 percent share.
Lifezone Metals Limited chief executive officer, Mr Chris Showalter, states in a statement that support from Taurus, a respected and experienced mining finance partner, reflects the strength of the project and the team’s ability to deliver.
“With the Feasibility Study now complete, Taurus’s funding enables us to advance critical early-stage development while progressing the competitive process underway with Standard Chartered to select additional strategic investment partners,” he says.
In the firm statement, he notes that, in parallel, they will advance the project financing process with Société Générale as they work toward a comprehensive funding solution for the Kabanga Nickel Project.
The loan bears interest at 9.25 percent per annum on drawn amounts, payable quarterly.
It is subject to an arrangement fee of 2.25 percent and a commitment fee of 2.5 percent per annum on undrawn amounts.
The loan is secured by a security interest in the shares that Lifezone indirectly holds in Kabanga Nickel Limited and by security interests in other assets relating to the Kabanga Nickel Project.
As part of the deal, Lifezone Metals issued 2.5 million warrants to Taurus, exercisable at $5.42 each and expiring five years from issuance. Other Lifezone subsidiaries back the guarantee.
Availability of borrowings under the facility is subject to satisfaction of customary conditions precedent.
The facility has a scheduled maturity date of 31 July 2027, with an option for Kabanga Nickel Limited to extend the term by an additional six months.
