Metals company Lifezone Metals has started an offtake marketing process with respect to its nickel, copper and cobalt from the Kabanga nickel project, in Tanzania, which the company believes comprises one of the world’s largest and highest-grade nickel sulphide deposits.
This follows the company having previously entered into a business combination agreement with NYSE-listed GoGreen Investments.
Lifezone says it seeks to support the clean energy transition through licensing its proprietary hydromet mineral processing technology as an alternative to smelting in metals production and becoming an emerging supplier of responsibly-sourced, low-carbon and low-sulphur dioxide emission metals to the battery, electric vehicle (EV) and hydrogen markets.
Lifezone is entitled to certain offtake marketing rights with respect to the Kabanga project and has retained the marketing rights for up to 40%, in aggregate, of the total contained nickel, cobalt and copper production from the project.
Given the interest in these products from original-equipment manufacturers, the company started a process aimed at monetising the offtake from the Kabanga project.
RBC Capital Markets has been engaged to run a formal offtake marketing process.
“The commencement of the offtake marketing process for the nickel, cobalt and copper to be produced at the Kabanga project is a key milestone in the development of Lifezone, as we work to build a champion for cleaner metals to support the global energy transition.
“There is a clear focus on upstream environmental footprint driven by consumer demand and regulatory targets in the US and Europe, and we expect a shift away from heavy-polluting sources of raw materials into the battery and EV supply chain,” says Lifezone CEO Chris Showalter.
“Recent test results indicate that the Kabanga project’s nickel concentrate is amenable to processing using the Hydromet technology, which we believe is key to unlocking the value of the project and paving the way for our future cleaner metal products,” he adds.
Source: Mining Weekly