US-Backed Orion CMC Weighs $500 Million Investment in Tanzania’s Kabanga Nickel Project
Tanzania’s Kabanga Nickel Project could attract an investment of about $500 million from Orion Critical Mineral Consortium (Orion CMC), as the US-backed group considers a strategic equity investment in one of the world’s largest high-grade undeveloped nickel sulphide deposits.
Orion CMC was established with backing from the US International Development Finance Corporation (DFC) and Abu Dhabi sovereign investor L’imad Holding.
The consortium forms part of a broader effort to secure supplies of critical minerals for global battery, industrial and advanced-technology supply chains.
The proposed investment remains under negotiation and has not been formally confirmed by Lifezone Metals, which controls the Kabanga project.
Lifezone selected a preferred strategic partner following a competitive process involving multiple offers, with Standard Chartered Bank advising on the investment process.
Located in north-western Tanzania, Kabanga contains significant deposits of nickel, copper and cobalt.
Lifezone’s feasibility study estimates pre-production capital requirements of about $942 million, with an 18-year mine life and planned production of approximately 3.4 million tonnes of ore annually.
The project is expected to produce a high-grade nickel, copper and cobalt concentrate, with Lifezone also planning downstream processing using its Hydromet technology to support greater in-country value addition.
Lifezone currently holds an 84% interest in the project, while the Tanzanian government holds a 16% free-carried interest.
The company has invested heavily in advancing the project and has already released approximately $854 million in contracts to the market as part of its preparation for construction.
Financing discussions are progressing alongside the strategic investment process. Societe Generale is advising on project financing, while the DFC has completed due diligence connected to political-risk insurance. Lifezone also continues to engage potential lenders, development finance institutions and export-credit agencies.
However, the project’s final investment decision has been pushed to the first quarter of 2027, following slower-than-expected negotiations over amendments to the project’s Framework Agreement with the Tanzanian government.
The agreement and related financing arrangements remain important conditions for the project’s development.
If concluded, the proposed Orion CMC investment could provide a substantial boost to Kabanga’s financing structure and advance the project towards construction.
For Tanzania, development of Kabanga could establish a significant new source of nickel, copper and cobalt while supporting mining investment, employment, infrastructure and downstream mineral processing.
The potential investment also highlights the growing international interest in Tanzania’s critical-minerals resources as global manufacturers seek diversified supplies of metals essential to batteries, electrification and advanced industrial applications.
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