BHP, the world's largest mining company by market value, is reshaping its portfolio to focus on copper and potash (a fertilizer component), betting on accelerated energy transition and global population growth. The Australia-based miner currently relies on iron ore for over half its revenue.
Late on July 18, Lifezone Metals Limited announced its acquisition of BHP's 17% stake in Kabanga Nickel, the project's majority holder, for up to $83 million. Lifezone now fully owns Kabanga Nickel, which holds 84% of the Tanzania-based project, with the Tanzanian government retaining the remainder. All existing agreements between Lifezone and BHP have been terminated.
Sources close to BHP cited uncertain global nickel market outlook as complicating investment in new greenfield nickel projects. BHP reportedly still views Kabanga as one of the world's premier undeveloped sulfide nickel deposits.
This exit follows BHP's recent suspension of its own Australian nickel operations. The miner stated last week it is assessing potential divestment of these assets, including Western Australian open-cut and underground mines, concentrators, a smelter, and a refinery. Despite billions invested since the early 2000s, BHP has struggled to achieve profitability in nickel.
BHP initially invested $40 million in Kabanga Nickel in late 2021, followed by a further $50 million a year later. It also invested $10 million directly in Lifezone. Lifezone estimates the Kabanga project will require approximately $942 million to build and is projected to produce over 900,000 tonnes of nickel during its nearly 20-year lifespan.
Written by Cora Ji, jiruyan@mysteel.com
