(Adds company comments on refinery and hydrometallurgy)
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 at a signing
ceremony in Bukoba 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 sulphide deposit, Kabanga Nickel says. 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 had 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 said it will be granted a refinery licence, and will
use hydrometallurgy technology to process nickel concentrate
in-country, rather than the more energy-intensive
pyrometallurgical process of smelting and refining.
"This process will eliminate the need to export concentrate
long distances to European or Asian smelters and refineries,
thus reducing capital and operating costs with significantly
less environmental impact," the company said.
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, Jason
Neely and David Evans)
Glencore (GLEN)
