DAR ES SALAAM — A US-backed investment vehicle is in advanced negotiations to inject up to $600 million into one of Africa’s largest undeveloped nickel deposits in Tanzania, as Washington steps up efforts to challenge China’s dominance over critical energy transition minerals.
Orion CMC, an investment consortium formed with backing from the US International Development Finance Corp. (DFC) and Abu Dhabi’s L’imad Holding, was chosen by New York-listed Lifezone Metals Ltd. as its preferred equity partner for the Kabanga nickel project. Under the proposed terms, Orion CMC would acquire a major minority stake in the asset, while Lifezone maintains operational control. The Tanzanian government currently holds a 16% free-carried interest in the project vehicle, with Lifezone owning the remainder.
The prospective deal comes as Western governments push to diversify critical mineral supply chains away from Beijing. Indonesia currently accounts for approximately 60% of global nickel production following heavy investments by Chinese mining companies, leaving Western EV manufacturers and stainless steel producers reliant on Chinese-controlled processing capacity.
“The Kabanga Nickel Project represents a transformative opportunity for Tanzania and for the global supply of critical nickel metal,” said Chris Showalter, Chief Executive Officer of Lifezone Metals. “Having proved the project’s global economic competitiveness, we are pleased with the progress made to date and remain committed to working closely with our partners to deliver this world-class project.”
Lifezone estimates the construction of the Kabanga mine will require approximately $942 million. The company has retained Société Générale SA as financial adviser to arrange the project’s debt package, targeting a final investment decision in early 2027.
Orion CMC launched with $1.8 billion in initial capital, with the DFC recently approving an additional $900 million to expand the vehicle’s global mining and minerals pipeline.
