Page 30 - pd296-August21-mag-web

AFRIcA DoWn UnDeR PReVIeW

Kabanga rebirth gathers pace

ne of the world’s largest undeveloped core on board with our plan. We then we site, including the box cuts.”
Obase metals projects has received a took it to the Government and explained it The company’s planned ramp-up coin-
new lease on life with the Kabanga nickel- to them.” cides with a shift in Tanzania’s investment
cobalt project in Tanzania set for develop- Liddell said the company spent two climate. New President Samia Suluhu
ment. years negotiating with Barrick, Glencore Hassan has been welcoming of interna-
A project which counts Falconbridge, and the Government over Kabanga, with tional investors, a stark change from pre-
BHP Ltd, Anglo American plc, Barrick Gold the final outcome a project which can meet decessor John Magufuli’s more combative
Corp and Glencore among its former own- Tanzania’s desire for in-country value addi- approach.
ers, Kabanga – in the north-west corner of tion to its mining output. Liddell said Kabanga Nickel had an
Tanzania – has always been an enticing “The refinery will be able to treat not just agreement framework in place to match
project given it holds 1.5mt of contained Kabanga concentrate but material from the agreement the Government and Bar-
nickel as well as large cobalt and copper other nickel sources as well,” he said. “And rick struck in 2019.
credits. there is the potential to put refractory gold “We have an agreement through our
The project was last taken to feasibility concentrate through as well, allowing for subsidiary Tembo Nickel which is exactly
study in 2014 by Barrick and Glencore but refined gold to be produced in Tanzania.” the same as the Twiga Minerals agreement
the subsequent nickel downturn and policy Kabanga Nickel has access to more than with Barrick,” Liddell said. “That framework
changes in Tanzania left its future uncer- 20 years of data into the project, including agreement is important for investors as it
tain. the 2014 feasibility study. Liddell said the is easy to understand and based on trans-
The asset is now under the control of company would take 12 months to review parency, honesty, respect and collabora-
private UK company Kabanga Nickel Ltd that data before releasing an updated tion. We understand that Tanzania needs
which believes it can bring together chang- study incorporating the hydrometallurgical a return on its national resources and the
ing market and political attitudes with its plant and up-to-date cost estimates. Government understands that investors
own hydrometallurgical expertise to allow He said the operation would be a simple need to see a return on their investment.”
Kabanga’s potential to be finally realised. one. Just who those investors may eventually
“It was really a matter of walking in with “It is not a big mining project, a 2.2 mtpa be is still to be answered. Kabanga Nickel
the right concept at the right time,” Kaban- underground operation with twin declines currently resides under the Lifezone ban-
ga Nickel executive chairman Keith Liddell into the two main orebodies, very similar to ner as part of the group’s punt on battery
said of the company’s entry into the project. the nickel mining we see in Western Aus- minerals.
“It was evident Barrick and Glencore tralia,” he said. “The group has been together for 10
were no longer interested in developing The company is now awaiting issue of years, initially focused on PGMs,” Liddell
it – having put it up for sale but failing to the special mining licence (SML) before said. “In recent years, we have made a
find a suitable buyer. At the same time, we ramping-up metallurgical test work. deliberate move to diversify into battery
knew the Tanzanian Government wanted “As soon as the mining licence is issued, minerals through Talga [Group Ltd, and its
an in-country beneficiation solution for Ka- we will get fresh metallurgical samples and Vittangi graphite project in Sweden] and
banga.” send them to Perth to run through a flota- Cornish Lithium [Ltd – lithium in the UK].
The beneficiation solution comprises the tion circuit for benchmark testing to pro- “Kabanga is part of that greater strategy.
Kell process, a propriety hydrometallurgi- duce Class 1 nickel,” Liddell said. “We will We had the concept, executed it and so far
cal flowsheet developed for the platinum also look to start pre-development work on it has worked.”
sector which uses For Liddell, Kaban-
pressure oxidation ga represents a return
to extract base met- to nickel, more than
als. The process has 20 years after he was
been developed by a founder of Pano-
the Lifezone Group, ramic Resources Ltd.
a company formed by He sees similarities
Liddell a decade ago. between the two.
The Kell process is “That has always
currently being used been our niche, find-
by Sedibelo Platinum ing projects that
Mines Ltd at its Pilan- haven’t had their day,
esberg plant in South but for which every-
Africa. thing is suddenly lined
“We are taking that up,” he said. “We did it
know-how and apply- with Panoramic at Sa-
ing it to Kabanga to vannah and I think we
produce Class 1 nick- can do it again with
el,” Liddell explained. Kabanga.”
“We reconceptualised
the project using the – Dominic Piper
hydromet solution and Tanzania’s chief treasurer Athumani Mbutukwa and Kabanga Nickel’s Chris von
got Barrick and Glen- Christierson (vice chairman) and Chris Showalter (chief executive) at the signing
ceremony for the Kabanga framework agreement

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