Lifezone Metals Files Initial Assessment for the Kabanga Nickel Project in Tanzania
Vertically Integrated Plan includes Hydrometallurgical Refinery at Kahama
Initial Assessment Proposes a 22-Year Mine Plan at Average
Webcast with Technical Leadership Team at 10 AM ET on Tuesday, June 3, 2025
Figure 1: Kabanga Nickel Project location in
Lifezone expects to complete the Kabanga Feasibility Study Technical Report Summary in July 2025, which will focus on the initial development phase of the underground mine and concentrator.
Initial Assessment Technical Report Summary highlights:
This Initial Assessment is preliminary in nature and the economic analysis includes Inferred Mineral Resources that are considered too speculative geologically to have modifying factors applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that this economic assessment will be realized.
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22-year mine plan with a 3.4 million tonnes per annum underground mining operation with total production of 67.9 million tonnes grading
1.93% nickel,0.26% copper and0.14% cobalt. - 3.4 million tonnes per annum concentrator, producing high-grade nickel, copper, and cobalt concentrate containing a total of 1.15 million tonnes of nickel, 171,000 tonnes of copper and 87,000 tonnes of cobalt.
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Hydrometallurgical refinery production design capacity of up to 50,000 tonnes per annum of nickel contained in battery-grade sulfate, up to 7,000 tonnes per annum of London Metal Exchange Grade A
99.99% copper cathode and up to 4,000 tonnes per annum of cobalt in sulfate. -
Pre-production capital cost of
$991 million 16.1% , with total mine plan revenue from sales estimated at approximately$23.68 billion $8.03 billion -
After-tax net present value of
$2.37 billion 8.0% discount rate and after-tax internal rate of return of22.9% , based on flat metal prices of$8.49 $4.30 $18.31 -
Low all-in sustaining costs for refined nickel products averaging
$2.71
Mr. Showalter commented: “The Kabanga Nickel Project represents a rare opportunity to develop a large-scale, high-grade nickel Mineral Resource with robust economics and a clear staged development path to production. The Initial Assessment highlights the project’s potential to deliver positive returns over a long life, supported by a low-cost operating profile, with approximately
Mr. Mouton added: “Today marks a significant and historic milestone in the nearly five-decade journey of the Kabanga Nickel Project. For the first time, Lifezone has successfully completed and publicly disclosed a technical-economic Initial Assessment in accordance with
TUESDAY: Webcast with Lifezone’s technical leadership team at 10:00 AM ET
The company invites shareholders, investors, and members of the media to join a virtual presentation and discussion of the key highlights of the Initial Assessment.
- Date: Tuesday, June 3, 2025.
- Time: 10:00 AM Eastern Time.
- Location: Virtual (please click the webcast registration link).
The presentation slides will be available on Lifezone’s website, and the webcast will be archived and accessible for replay for a limited time after the event.
Figure 1: Kabanga Nickel Project location in
Figure 2: Overview of the Kabanga site camp.
Kabanga Nickel Project Initial Assessment overview
The Initial Assessment outlines a vertically integrated development plan for the Kabanga Nickel Project, proposing a 3.4 million tonnes per annum underground mining operation processing a total of 67.9 million tonnes of mill feed. The average feed grade is
Nickel, copper and cobalt recoveries are expected to average
The Initial Assessment contemplates pre-production capital expenditures of
The project economics made use of long-term consensus metal prices. With the metal price assumptions of
Table 1: Summary of the Initial Assessment Results.
| Kabanga Mine and Concentrator |
|
| Mine Plan | 22 years |
| Total Mill Feed | 67.9 Mt |
| Nameplate Mill Throughput | 3.4 Mtpa |
| Average Nickel Feed Grade |
|
| Average Copper Feed Grade |
|
| Average Cobalt Feed Grade |
|
| Average Nickel Recovery |
|
| Average Copper Recovery |
|
| Average Cobalt Recovery |
|
| Total Concentrate Produced | 7,263 kt wet |
| Average Nickel Concentrate Grade |
|
| Moisture Content of Concentrate |
|
| Total Nickel Production (in concentrate) | 1,146 kt |
| Total Copper Production (in concentrate) | 171 kt |
| Total Cobalt Production (in concentrate) | 87 kt |
| Kahama Refinery |
|
| Average Nickel Refinery Recovery |
|
| Average Copper Refinery Recovery |
|
| Average Cobalt Refinery Recovery |
|
| Total Nickel Sulfate Produced | 3,419 kt |
| Total Copper Cathode Produced | 110 kt |
| Total Cobalt Sulfate Produced | 272 kt |
| Operating Costs |
|
| Mining |
|
| Concentrator and Infrastructure |
|
| Kahama Refinery |
|
| Owner’s Cost, Administration and Overhead Costs |
|
| Total Operating Costs |
|
| All-In Sustaining Costs |
|
| Mining |
|
| Concentrator |
|
| G&A |
|
| Concentrate Transport and Insurance |
|
| Refinery - Kahama, Transport and Insurance |
|
| Total Cash Cost (before by-product credits) |
|
| Royalties |
|
| Sustaining Capital Expenditures |
|
| All-In Sustaining Costs (before by-product credits) |
|
| Copper By-Product Credit |
- |
| Cobalt By-Product Credit |
- |
| Total All-In Sustaining Costs |
|
| Capital Expenditures |
|
| Pre-Production Capex |
|
| Capitalized Opex |
|
| Growth Capex |
|
| Sustaining Capex (incl. Closure) |
|
| Valuation Metrics |
|
| Flat-Lined Nickel Price |
|
| Flat-Lined Copper Price |
|
| Flat-Lined Cobalt Price |
|
| Discount Rate |
|
| After-Tax Net Present Value |
|
| After-Tax Internal Rate of Return |
|
| Payback Period from Final Investment Decision (incl. 2.5-year construction period) | 9.8 years |
| Capital Efficiency (NPV/Pre-Production Capex incl. Capitalized Opex) | 2.1 |
| Capital Efficiency (NPV/Pre-Production + Growth Capex) | 1.3 |
Table 2: Kabanga Mineral Resource Estimates3 as at December 4, 2024.
| Mineral Resource Classification | Lifezone Tonnage3 |
Grades (%) | Recovery (%) | |||||
| (million tonnes) | NiEq24 | Nickel | Copper | Cobalt | Nickel | Copper | Cobalt | |
| MINERAL RESOURCE ALL ZONES – Massive Sulfide plus Ultramafic | ||||||||
| Measured | 15.9 |
2.48 |
1.95 |
0.26 |
0.16 |
82.7 |
92.0 |
85.4 |
| Indicated | 31.0 |
2.69 |
2.16 |
0.30 |
0.16 |
82.9 |
92.6 |
85.3 |
| Measured + Indicated | 46.8 |
2.62 |
2.09 |
0.29 |
0.16 |
82.8 |
92.4 |
85.3 |
| Inferred | 11.3 |
2.59 |
2.08 |
0.28 |
0.15 |
83.7 |
93.7 |
86.5 |
1. |
This table reports the Mineral Resources for the combined massive sulfide and ultramafic mineralization types. |
||
2. |
There are no Mineral Reserves to report as at date of this Initial Assessment Technical Report Summary. |
||
3. |
Mineral Resources are reported showing only the Lifezone-attributable tonnage portion, which is |
||
4. |
Cut-off applies to NiEq24, which is derived using a nickel price of |
||
5. |
NiEq24 formulae are: MSSX NiEq24 = Ni + (Cu x 0.454) + (Co x 2.497); UMAF NiEq24 = Ni + (Cu x 0.547) + (Co x 2.480). |
||
6. |
The point of reference for Mineral Resources is the point of feed into a concentrator. |
||
7. |
All Mineral Resources in the 2024 Mineral Resource Update were assessed for reasonable prospects for economic extraction by reporting only material above cut-off grades of: MSSX NiEq24> |
||
8. |
Totals may vary due to rounding. |
The Initial Assessment is based on the December 2024 Mineral Resource Update, which includes 46.8 million tonnes of attributable Measured and Indicated Mineral Resources grading
For a discussion of Lifezone’s Framework Agreement with the Government of
The Initial Assessment is preliminary in nature and includes economic analyses that incorporate Inferred Mineral Resources, which are considered too speculative geologically to be classified as Mineral Reserves. There is no certainty that the results of the Initial Assessment will be realized.
For a scenario excluding Inferred Mineral Resources, the Initial Assessment estimates an after-tax net present value (
The capital cost, operating cost and sustaining capital cost estimates were prepared for the project as part of the Initial Assessment. The estimates are classified as being at an Association for the Advancement of Cost Engineering Class 5 level, with an accuracy range of ±
Figure 3: Production schedule with Measured, Indicated and Inferred Mineral Resources.
The Initial Assessment also outlines a sustainable tailings management strategy in line with Global Industry Standard on Tailings Management and Australian National Committee on Large Dams best practices. Approximately
Robust Initial Assessment economics for a globally significant source of nickel, copper and cobalt
A preliminary mine design, accessing Measured and Indicated Mineral Resources as well as Inferred Mineral Resources, outlines a 22-year mine plan for the project, with total underground production of 67.9 million tonnes grading
Total operating costs are projected to average approximately
Pre-production capital expenditures are estimated at
Figure 4: Estimated project cash flows.
The project economics made use of long-term consensus metal prices. Metal price assumptions, of
The Initial Assessment also demonstrates strong downside resilience to nickel price fluctuation. Applying a sensitivity analysis at
Figure 5: Sensitivity analysis of after-tax net present value (
Phased underground mine development enhances capital efficiency and operational readiness
The Initial Assessment outlines a phased underground mine development strategy at Kabanga, designed to optimize capital efficiency and support an achievable production ramp-up. The mine will be accessed via declines from two boxcuts at the North and Tembo zones. Kima zone will share access from the North decline, while the Main and MNB zones are accessed via the North Mine. The underground operation will ramp up to a steady state rate of 3.4 million tonnes per annum which will feed the concentrator.
Figure 6: Proposed mine design.
Mining will be conducted using longhole stoping with paste backfill, with level spacing of 25 meters and stope strike lengths ranging from 20 to 30 meters. The mining sequence prioritizes the high-grade portions of the North zone. The North and Kima zones are expected to supply approximately
The development schedule includes a 2.5-year construction period followed by a 2.5-year ramp-up phase, during which critical infrastructure such as ventilation raises, pumping systems, and underground services will be established. The first five years of mining will be executed by a contract mining firm selected through a competitive tender process, ensuring experienced execution and cost control during the early stages of operation.
Figure 7: Proposed mine design sequence (in years).
Further Exploration Targets offer significant upside potential
The Initial Assessment Technical Report Summary also discloses an overall Exploration Target of 17.5 to 23.5 million tonnes grading
The ranges of potential tonnage and grade of the Exploration Targets are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for these target areas. It is uncertain if further exploration will result in the estimation of a Mineral Resource.
Table 3: Exploration Target summary.
| Exploration Target | Mineralization Type |
Estimated Tonnage (Mt) |
Estimated Grade (NiEq24%) |
| Safari Link | Ultramafic | 1.5 - 2.0 | 1.2 - |
| Massive Sulfide | 3.0 - 3.5 | 2.5 - |
|
| Total | 4.5 - 5.5 | 2.1 - |
|
| Safari Extension | Massive Sulfide plus Ultramafic | 3.0 - 4.0 | 1.8 - |
| Rubona Hill | Ultramafic | 8.0 - 10.0 | 1.8 - |
| Block 1 South | Ultramafic | 2.0 - 4.0 | 1.8 - |
| Total All | - |
17.5 - 23.5 | 1.9 - |
Lifezone has allocated a portion of the growth capital expenditures to support drilling and geophysical surveys across these targets, with the aim of delineating additional resources and supporting potential future expansions.
Figure 8: Location of Safari Link and Safari Extension exploration targets with airborne Versatile Time-Domain Electromagnetic background and interpreted major faults.
Efficient sulfide concentrate production with high recoveries at the Kabanga concentrator
The Initial Assessment outlines a conventional concentrator facility at Kabanga, designed to process 3.4 million tonnes per annum and produce a high-grade nickel-copper-cobalt concentrate. The flowsheet, comprising crushing, wet grinding, flotation and dewatering, has been developed through extensive metallurgical testwork to suit the deposit’s mineralogy, including massive sulfide, semi-massive sulfide and ultramafic-hosted zones.
The concentrator is expected to achieve average metallurgical recoveries of
The high-grade, low-impurity nature of Kabanga’s concentrate has received strong interest from potential offtake partners for both nickel concentrate and refined battery-grade products. Indicative, non-binding terms have been obtained for
High recoveries of battery-grade metals enabled by hydrometallurgical refining at Kahama
The Initial Assessment includes the Kahama refinery as a cornerstone of Lifezone’s vertically integrated strategy, employing a hydrometallurgical process to produce battery-grade nickel and cobalt sulfate products and London Metal Exchange Grade A
Designed to process concentrate from the Kabanga mine, the refinery is expected to achieve average metal recoveries from concentrate of
Figure 9: Allocated refinery site at Kahama.
Strategically located within Tanzania’s Buzwagi Special Economic Zone, the Kahama refinery benefits from existing bulk infrastructure and supports the country’s industrialization goals. By refining metals in-country with hydrometallurgy, the project is expected to have a reduced carbon dioxide emissions footprint compared to traditional smelting and overseas processing and enhances supply chain transparency.
Integrated logistics network strengthened by national infrastructure upgrades
The Kabanga Nickel Project is supported by a logistics network that connects the Kabanga mine site to the Kahama refinery and international export markets. Nickel-copper-cobalt concentrate will be transported approximately 348 kilometers by road from Kabanga to the Isaka Dry Port (rail terminal), using third-party haulage and sealed Flexible Bulk Containers. From Isaka, the concentrate will be transferred onto the Standard Gauge Railway, which is expected to be operational in 2026, for shipment to the Kwala Dry Port and then via dedicated “Port Link” to the Port of Dar es Salaam, into bulk sea freight vessels.
Once the Kahama Refinery begins operations, concentrate will be trucked approximately 320 kilometers by road from Kabanga to the refinery. The refined products, nickel sulfate, copper cathode and cobalt sulfate, will then be transported approximately 30 kilometers by road to Isaka Dry Port, loaded onto the Standard Gauge Railway, and transported via the same route to the Port of Dar es Salaam for export.
Recent national infrastructure investments, including the Standard Gauge Railway, expanded port capacity at Dar es Salaam and the Julius Nyerere Hydropower Project, are expected to enhance the efficiency, reliability and sustainability of the project’s logistics operations.
Figure 10: Standard Gauge Railway locomotives in operation.
Strong ESG credentials aligned with global best practices
The Kabanga Nickel Project is committed to aligning with both Tanzanian regulatory requirements and internationally recognized ESG standards. The project operates within the legal framework of
The Project also seeks alignment with leading international ESG frameworks. These include the International Finance Corporation Performance Standards, Equator Principles, Global Industry Standard on Tailings Management and guidelines issued by the and Australian National Committee on Large Dams and International Council on Mining and Metals, ensuring the adoption of sustainable and responsible mining practices.
Comprehensive Environmental and Social Impact Assessments have been completed and approved by Tanzania’s National Environment Management Council for the mine, refinery and resettlement sites.
A Resettlement Action Plan, aligned with International Finance Corporation Performance Standard 5, ensures fair and sustainable relocation for affected communities, with
Catalyzing economic growth and industrial development in
The Kabanga Nickel Project is poised to deliver long-term economic benefits to
The Framework Agreement with the Government of
The Kahama Refinery, located in the Buzwagi Special Economic Zone, will position
Next steps and strategic recommendations
As one of the world’s largest undeveloped high-grade nickel sulfide deposits, the Kabanga Nickel Project is uniquely positioned to support the global energy transition. With its integrated mine-to-refinery model and strong partnership with the Government of
With the Initial Assessment complete, the project will advance to the completion of a Feasibility Study for the underground mine and concentrator, supported by a Mineral Reserve Statement. The target for completion of the Feasibility Study is July 2025.
To support the Kabanga project development, Lifezone is pursuing a diversified funding strategy that includes a mix of equity, strategic partnerships, and project-level debt. Discussions are ongoing with development finance institutions, commercial lenders, and potential strategic investors. The project’s attractive economics, low operating costs and alignment with global critical minerals priorities position Kabanga as a compelling candidate for sustainable financing. Lifezone expects to finalize the funding package following completion of the Feasibility Study.
Qualified Persons
The “Initial Assessment – Technical Report Summary Kabanga Nickel Project” is dated June 2, 2025 and was prepared by DRA Projects (Pty) Ltd. and Sharron Sylvester in accordance with the United States Securities and Exchange Commission’s (Modernized Property Disclosure Requirements under Subpart 229.1300 of Regulation S-K and Item 601(b)(96).
Sharron Sylvester, BSc (Geol), RPGeo AIG (10125), is employed as Technical Director – Geology, OreWin Pty Ltd, and was responsible for the preparation of the sections relating to geology and Mineral Resources as the QP (individual), excluding cut-off grade and reasonable prospects assessments.
DRA is a third-party firm comprising mining experts in their respective fields in accordance with 17 CFR § 229.1302(b)(1). Lifezone has determined that the appointed consultants meet the qualifications specified under the definition of QP in 17 CFR § 229.1300.
The Initial Assessment Technical Report Summary includes relevant information regarding the assumptions, parameters and methods of the Initial Assessment on the Kabanga Nickel Project, along with the previously-reported Mineral Resource estimates as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release.
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About Lifezone Metals
Lifezone Metals (NYSE: LZM) is committed to delivering cleaner and more responsible metals production and recycling. Through the application of our Hydromet Technology, we offer the potential for lower energy consumption, lower emissions and lower cost metals production compared to traditional smelting.
Our Kabanga Nickel Project in
Through our US-based recycling partnership, we are working to demonstrate that our Hydromet Technology can process and recover platinum, palladium and rhodium from responsibly sourced spent automotive catalytic converters. Our process is expected to be cleaner and more efficient than conventional smelting and refining methods, enabling the circular economy for precious metals.
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Except as otherwise required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data, or methods, future events, or other changes after the date of this communication.
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Investor Relations –
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SVP: Investor Relations & Capital Markets
evan.young@lifezonemetals.com
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Chief Financial Officer
ingo.hofmaier@lifezonemetals.com
Source: Lifezone Metals
