Global law firm Clyde & Co has advised the UK mining company, Kabanga Nickel, on a binding framework agreement with the government of Tanzania to develop the Kabanga Nickel Project
Clyde & Co acted as legal adviser to Kabanga Nickel (formerly LZ Nickel Limited) on various aspects of the matter, including the major transaction documents, as well as providing strategic corporate advice on due diligence, setting up the relevant entities and regulatory approvals.
Located in the north-west of Tanzania, the multi-billion dollar Kabanga project hosts an in situ mineral resource of 58 million tonnes at 2.62% Ni, containing more than 1.52 million tonnes of nickel, a key ingredient for the making of electric vehicles. Kabanga will support a mine life of at least 30 years with further exploration potential.
As part of the deal, the parties have also created a joint venture company called Tembo Nickel Corporation Limited (owned 84% by Kabanga Nickel and 16% by the government of Tanzania) to undertake mining, processing and refining of Class 1 nickel with cobalt and copper co-products.
Michael Strain, partner and head of corporate – East Africa at Clyde & Co in Dar es Salaam, commented, “This is a landmark agreement and a significant development for Tanzania – heralding a much-needed new dawn for the Tanzanian mining industry and investor confidence."
Keith Liddell, chairman of Kabanga Nickel, said, “We are excited to start our journey to develop Kabanga into a unique, ESG compliant, responsible mine of the future. This mine will contribute significantly towards supplying critical and traceable battery metals for the transition to a low carbon world economy."
