BHP Invests $ 50 Million in Nickel Mine in Tanzania

British Australian mining giant BHP has invested $ 50 million in Kabanga Nickel in Tanzania, and as demand for metals used in the production of batteries for electric vehicles grows, an additional $ 50 million has been agreed, depending on conditions. I did.

This investment means re-entry into Africa’s mining sector after BHP dismantles Perth-based metal miner South32, which operates mines in South Africa and Australia, in 2015.

The Kabanga deposit contains an estimated 1.86 million tonnes of in-situ resources equivalent to nickel. Initial production is scheduled for 2025, with a minimum annual nickel production target of 65,000 tonnes over an estimated 30 years of mine life.

At full capacity, Kabanga produces 4,000 tons of cobalt annually, a metal produced as a by-product of nickel mining used in the production of lithium-ion batteries and high-strength alloys.

This project is a partnership with the Government of Tanzania, which has a 16% stake through its local partnership, Tembo Nickel Corporation. Kabanga was the first new major mining project to obtain a mining license in Tanzania within 10 years. Kabanga Nickel Limited is a private company registered in the United Kingdom.

Mining welcomed

This transaction represents a new era of cooperation with the international mining industry under President Samia Suluhu Hassan of the United Republic of Tanzania.

$ 40 million in BHP investment accelerates mine development, $ 10 million patented to produce battery-grade metal using wet smelting technology that consumes less power and emits less than traditional smelting It will be invested in Lifezone, a technology development company that owns the completed process. ..

Future investment in Kabanga Nickel The tranche was agreed according to certain terms, including a second tranche of $ 50 million, but BHP will make further investments provided it achieves the agreed milestone. I have secured the right to do it.

Demand for electric vehicles

Nickel prices have risen from less than $ 14,000 in January 2020 to $ 20,000 per ton against the backdrop of global demand for electric vehicle batteries.

Nickel prices are expected to hit record highs by 2027, with a steady upward trend from 2023 to 2027, and then peaking by the end of the year, according to data released by Fitch Solutions. There is sex. However, they predict that this year’s price will average $ 17,000 per ton lower than $ 18,400 per ton in 2021.

According to Deloitte, global electric vehicle sales are projected to more than double by 2030 to 31.1 million units, accounting for almost one-third of new vehicle sales.

BHP Invests $ 50 Million in Nickel Mine in Tanzania

Source link BHP Invests $ 50 Million in Nickel Mine in Tanzania

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