Key Points
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Lifezone secures $60M bridge loan for Tanzania nickel project.
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Kabanga Nickel seen as key source for EV battery supply.
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Financing strengthens investment case ahead of full-scale construction.
To move forward with its Kabanga Nickel project in northwest Tanzania, Lifezone Metals Ltd. has obtained a $60 million bridge loan.
The company claims that this move will keep the multibillion-dollar development on track for production in the second half of the decade.
A company statement on Tuesday said the funding, which is supported by a syndicate of resource-focused investors, will pay for site preparation, engineering, and procurement expenses for the upcoming year.
Known as one of the world’s largest untapped nickel sulfide deposits, Kabanga is anticipated to supply the increasing demand for the metal in stainless steel and electric vehicle batteries.
Fast-tracking nickel production is the goal of financing
According to Lifezone, the bridge loan gives breathing room while it completes a more comprehensive project funding package that may include strategic alliances.
Because of the loan’s adjustable terms of repayment, the business can concentrate on building rather than paying off debt right now.
According to CEO Chris Showalter, the funding is “a key milestone” that will enable Lifezone to proceed quickly with full-scale development after all necessary financing and approvals are obtained. According to him, “this bridge financing highlights investor confidence in Kabanga’s potential to become a globally significant source of Class 1 nickel.”
Interest in Tanzania’s nickel project is global
Global mining companies and battery producers interested in securing a sustained supply of high-grade nickel in the face of tightening markets have taken notice of the Kabanga Nickel project.
According to a report by Mining weekly, Tanzania’s unexplored nickel reserves are now a major focus of Africa’s mining push, as the International Energy Agency projects that demand for battery metals could quadruple by 2040.
The Tanzanian government, which has a 16 percent stake in the project, is working with the team to develop it. By processing ore locally using its in-house hydromet technology, Lifezone intends to lessen its environmental impact and preserve more value domestically than would be possible with traditional smelting.
The project’s investment case is strengthened by a bridge loan
According to analysts, the bridge loan indicates that the market is ready for larger-scale investment in addition to meeting urgent capital needs. When fully developed, Kabanga could produce over 40,000 tonnes of nickel per year, in addition to cobalt and copper byproducts.
By early 2026, Lifezone anticipates announcing the full project financing structure, and construction will pick up speed soon after. The current goal is to start production in 2028.
