Kahama Area Formally Declared a Special Economic Zone
Marks Another Important Step for Tanzania Towards Establishing Transformational Method of Metals Recovery and Full In-Country Beneficiation
March 21, 2024 12:51 PM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Lifezone Metals Limited’s (NYSE: LZM) Chief Executive Officer, Chris Showalter, is pleased to announce that the Company has received a Multi-Metal Processing Facility Licence from the Government of Tanzania to refine nickel, copper and cobalt from its Kabanga Nickel Project at Kahama, located beside Barrick Gold’s former Buzwagi Gold Mine.
The Kabanga Nickel Project is located in the north-west Tanzania and is believed to be one of the world’s largest and highest-grade undeveloped nickel sulfide deposits. The Kahama Multi-Metal Processing Facility (“the Kahama Refinery”) site is located approximately 340 kilometers south-west of Kabanga. Lifezone’s subsidiary, Tembo Nickel Corporation Ltd. (“Tembo Nickel”) is the operating entity for Kabanga and Kahama, and is 16% owned by the Government of Tanzania.
Notably, through the application of Lifezone’s Hydromet Technology, Kabanga and Kahama will be able to produce finished metals in-country, potentially reducing capital and operating costs, as well as reducing costs associated with transport of concentrate or other intermediate products. Full in-country beneficiation will contribute towards local content optimization and eventually national development through the principle of equitable sharing of economic benefits. A Definitive Feasibility Study for the Kabanga Nickel Project remains on track for completion by Q3 2024.
Lifezone Metals’ Hydromet Technology is a transformational method of metals recovery that has the potential to replace smelting for base and precious metals refining. Pyrometallurgical smelting is one of the largest contributors to pollutive gas emissions, greenhouse gases and energy inefficiency in the production of metals products and the use of Hydromet Technology will help to unlock nickel, copper and cobalt from Kabanga, providing lower cost, lower emissions (relative to smelting) and traceable metals for Electric Vehicles batteries and to support the global energy transition.
Mr. Showalter stated: “The ongoing level of commitment and support that we have received from the Government of Tanzania in the advancement of our Kabanga Nickel Project is exemplary. With the receipt of our Kabanga Special Mining Licence, and now the Kahama Refinery Licence, we have a clear path to delivering a direct-to-metal solution and enabling the production of nickel, copper and cobalt in Tanzania and by Tanzanians.”
Speaking at the ceremony, Minister of Minerals, Hon. Anthony Mavunde stated (translated from Swahili): “The construction of a multi-metals refinery will be a solution to metals mining companies in country that are forced to export concentrates to refineries abroad. I urge all miners who have been experiencing this challenge to work closely with the Government to ensure that we all succeed in ensuring full in-country beneficiation is achieved in the mining sector, by processing in-country and exporting finished products. […] Today’s event is a historical one for our country, as we progress to having a large multi-metal refinery that will use hydrometallurgy technology.”
In addition, the Shinyanga Regional Commissioner, Hon. Anamringi Macha said (translated from Swahili): “The investment by Tembo Nickel’s Multi-Metals Refinery will help change the face of the Kahama district and the Shinyanga Region by increasing formal and informal employment opportunities for citizens, but it is also another step in the history of Shinyanga region; where the mining sector has played a major role in the economic development of our region.”
The issuance of the Kahama Refinery License follows the formal gazettement of the Special Economic Zone (Declaration) Notice, 2024 which declared the Buzwagi Mining Area, within Kahama District in Shinyanga Region, a Special Economic Zone. The Kahama Refinery will be located within the Special Economic Zone, which will provide certain tax and other economic benefits for the Project.
In addition, the Kahama Refinery stands to benefit from access to a highly trained workforce and legacy infrastructure from the Buzwagi Gold Mine, including existing camp and office buildings, regional power connections, airstrip, road connections and railway in near proximity. This “plug-and-play” industrial hub brings significant project execution and capital cost benefits, as well as turning a past-producing mine liability into a long-term asset. Lifezone will not be taking on any legacy liabilities in relation to the closure of the Buzwagi Gold Mine.
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About Lifezone Metals
At Lifezone Metals (NYSE: LZM), our mission is to provide cleaner and more responsible metals production and recycling. Using a scalable platform underpinned by our Hydromet Technology, we offer lower energy, lower emission and lower cost metals production compared to traditional smelting.
Our Kabanga Nickel Project in Tanzania is believed to be one of the world’s largest and highest-grade undeveloped nickel sulfide deposits. By pairing with our Hydromet Technology, we are working to unlock a new source of LME-grade nickel, copper and cobalt for the global battery metals markets, and empower Tanzania to achieve full in-country value creation and become the next premier source of Class 1 nickel. A Definitive Feasibility Study for the project is due for completion by Q3 2024.
Through our US-based, platinum, palladium and rhodium recycling joint venture, we are working to demonstrate that our Hydromet Technology can process and recover platinum group metals from responsibly sourced spent automotive catalytic converters in a cleaner and more efficient way than conventional smelting and refining methods.
https://lifezonemetals.com/
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The foregoing list of risk factors is not exhaustive. There may be additional risks that Lifezone Metals presently does not know or that Lifezone Metals currently believes are immaterial that could also cause actual results to differ from those contained in forward-looking statements. In addition, forward-looking statements provide Lifezone Metals’ expectations, plans or forecasts of future events and views as of the date of this communication. Lifezone Metals anticipates that subsequent events and developments will cause Lifezone Metals’ assessments to change. However, while Lifezone Metals may elect to update these forward-looking statements in the future, Lifezone Metals specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as representing Lifezone Metals’ assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements. Nothing herein should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results in such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which are based upon information available to us as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. In all cases where historical performance is presented, please note that past performance is not a credible indicator of future results.
Except as otherwise required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data, or methods, future events, or other changes after the date of this communication, except as required by applicable law.
Contacts
Investor Relations – North America
Evan Young
SVP: Investor Relations & Capital Markets
[email protected]
Investor Relations – Europe
Ingo Hofmaier
Chief Financial Officer
[email protected]
Media Enquiries
David Petrie
Manager: Corporate Communications
[email protected]
Tanzania Media Enquiries
Mariagoreth Charles
Tembo Nickel Corporate Communications Manager
[email protected]
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