By Nuzulack Dausen
DAR ES SALAAM, Jan 19 (Reuters) - Tanzania and UK-based
mining firm Kabanga Nickel Limited signed a framework agreement
on Tuesday to jointly develop the Kabanga nickel project
formerly owned by Barrick Gold and Glencore.
Foreign minister Palamagamba Kabudi said during a signing
ceremony in Bukoba that the government would own a 16% undiluted
free-carried interest in the nickel project through a new joint
venture company, Tembo Nickel Corporation, 84% owned by Kabanga
Nickel.
By law, Tanzania's government gets a 16% stake in all mining
projects in the country.
Nickel is a key electric car battery material and Kabanga -
in Tanzania's northwest - is the world's largest
development-ready, high-grade nickel sulfide deposit, according
to Kabanga Nickel. It is estimated to contain more than 1.52
million tonnes of nickel.
Barrick Gold and Glencore lost the nickel project in 2018
when Tanzanian President John Magufuli's administration revoked
their retention licence along with 10 others as part of new
mining laws and regulations.
Kabanga Nickel, which was previously called LZ Nickel, said
it has agreed with Barrick and Glencore to acquire all the
project data and information from them, including a 2014 draft
feasibility study report and subsequent updates.
As well as starting the mine, Kabudi said Kabanga Nickel is
required to build a nickel smelter which can also smelt other
metals such copper and gold.
Kabanga Nickel said Tembo would produce Class 1 nickel and
cobalt products, and LME Grade A copper cathode. The mine is
estimated to contain more than 100,000 tonnes of cobalt - also
used in batteries.
(Reporting by Nuzulack Dausen; editing by Helen Reid and Jason
Neely)
Glencore (GLEN)
