Orion CMC Eyes $500–600 Million Tanzania Kabanga Nickel Deal

Orion Critical Mineral Consortium (Orion CMC) is in talks to invest $500 million to $600 million in Tanzania’s Kabanga nickel project, according to Africa Confidential. Bloomberg has also reported that Orion CMC is the preferred bidder in a process led by Standard Chartered. Lifezone Metals, which controls Kabanga, has confirmed advanced discussions with potential strategic investors but has not disclosed the investor or value of the proposed deal.

The potential investment comes as Lifezone works to secure financing and finalise an amended framework agreement with the Tanzanian government. The company now expects to make a final investment decision in the first quarter of 2027.

Investment Targets Kabanga’s Equity Requirement

Lifezone’s feasibility study puts Kabanga’s pre-production capital requirement at $942 million. The company has discussed financing the project with about 60% debt and 40% equity, which would put the equity requirement at roughly $377 million before additional costs. A $500–600 million investment could therefore cover a substantial part, or potentially all, of Kabanga’s equity requirement.

The project has 52.2 million tonnes of proven and probable reserves, grading 1.98% nickel, 0.27% copper and 0.15% cobalt. Lifezone’s planned operation is expected to produce material containing about 902,000 tonnes of nickel, 134,000 tonnes of copper and 69,000 tonnes of cobalt over an 18-year mine life. Orion CMC was established by the US International Development Finance Corporation, Orion Resource Partners and Abu Dhabi investor ADQ, giving the potential investment a strong critical-minerals angle.

Government Agreement Still Outstanding

Lifezone is negotiating changes to its framework agreement with Tanzania to allow a staged development. The mine and concentrator would be developed first, with the hydrometallurgical refinery at Kahama following about five years later. The phased approach would also create opportunities for Tanzanian workers and local businesses as construction and mining activities increase. Mining startups and SMEs could benefit from contracts for services, equipment, transport, logistics and other support activities, although the scale of those opportunities will depend on the project’s final development schedule and procurement plans.

The amended agreement and a joint financial model covering benefit-sharing are among the conditions for completing project financing.The proposed investment, if concluded, would give Kabanga a major source of equity as Lifezone works towards its Q1 2027 final investment decision.