Nickel
Tanzania hosts the Kabanga Nickel Sulfide Deposit, one of the largest and richest undeveloped nickel sulfide deposits known at present, with a resource estimate of 58 million tonnes of ore at an average in-situ nickel grade of 2.62% (last measured in 2014).
Nickel mining in Tanzania is still in its infancy, yet the country is positioned to become a strategic supplier of Class 1 battery-grade nickel through the Kabanga project and complementary exploration initiatives across the East African Nickel Belt.
Nickel, a silvery-white transition metal valued for stainless steel, alloys and battery cathodes used in electric vehicles, is a critical input for the global energy transition, and Tanzania's endowment places it among the most watched frontier jurisdictions for upstream supply.[1]
Contents
Nickel Endowment and Geological Setting in Tanzania
Tanzania's nickel resources are concentrated in the East African Nickel Belt (EANB), whose major component is located in Burundi and western Tanzania.
The nickel deposits of the belt are of both lateritic and sulphidic types, with mineralization spanning several intrusive complexes.
Kabanga is currently the only intrusion in the EANB with potentially economic nickel sulfides, giving Tanzania a distinctive position within the regional geological province.
Additional prospects such as the Kapalagulu Intrusion in western Tanzania and Ntaka Hill in south-eastern Tanzania host both laterite mineralization (nickel associated with cobalt) and sulfide mineralization (nickel associated with copper and platinum-group elements).
The Kabanga Nickel Sulfide Deposit
The Kabanga deposit is located in far north-western Tanzania, approximately 120 km south-west of Lake Victoria and within a few kilometers of the Burundi border.
The latest Resource Estimate (Measured, Indicated, and Inferred), dated 2014, indicates 58 million tonnes of ore at an average in-situ nickel grade of 2.62%.
Mineralization of the resource is greater than 95% massive sulfide, an unusually clean feedstock that lowers downstream processing complexity.
Both the tonnage and the grade estimates have increased dramatically since the first resource estimate on the Kabanga main body, which was carried out by the United Nations Development Programme in 1979 and reported 21 million tonnes grading 1.0% nickel.
Why Kabanga Stands Out
Kabanga combines a sufficient tonnage (greater than 50 million tonnes) to warrant the necessary capital expenditure with a high nickel grade (2.6%) that ensures low mining, milling, and concentration costs relative to the value of the concentrate product.
The high grade at Kabanga is due to the combination of the high abundance of sulfide in the rock (75 to 100 modal %) and the relatively high tenor of these sulfides (2 to 4% in 100% sulfides).
Neither of these features is common in the other intrusions of the belt.
Exploration History and Timeline
Investigation throughout Africa by the International Nickel Company (INCO) in the 1950s resulted in the discovery of copper-nickel alloys at the Kapalagulu Complex in western Tanzania and Ntaka Hill in south-eastern Tanzania.
Further work at Kapalagulu was carried out by Anglo-American Corporation and other organizations until the early 1970s, resulting in the discovery of lateritic nickel.
Mineral exploration accelerated throughout the 1970s and 1980s across Africa with the direct aid of the United Nations Development Programme, and the Kabanga nickel sulfide deposit of northwest Tanzania was discovered in 1978 as part of the East African Nickel Belt.
Commercial exploration at Kabanga has been carried out almost continuously since 1991 by various foreign mining and exploration companies.
Other Nickel Projects and Prospects
Commercial exploration of the Kapalagulu intrusion commenced in the 1950s and continues today, with several encouraging prospects having been discovered.
The Kabulwanyele Nickel Project is located approximately 35 km from the western shore of Lake Tanganyika, in an area that forms part of the western limb of the East African Rift systems.
Laterite hills at Kabulwanyele are prospective for nickel, cobalt, and manganese.
In April 2021, Resource Mining (ASX:RMI) announced that it had commenced exploration field activities at Kabulwanyele.
Policy Framework and Government Agreements
In January 2021, the Ministry of Minerals of Tanzania signed an investment agreement with Kabanga Nickel Limited of the United Kingdom (formerly LZ Nickel Limited) for the development of the nickel mining project.
The Government of Tanzania and Kabanga Nickel agreed to form a joint venture, Tembo Nickel Corporation, which owns two subsidiaries: Tembo Nickel Mining Company, involved in nickel mining in Kabanga, and Tembo Nickel Refinery Company, involved in mineral refining in Kahama, Shinyanga.
Under the current mining laws, Tanzania enjoys a 16% free-carried interest (equity interest granted to the State by the company holding a mining license), plus 50/50 sharing in the economic benefits generated by the mining operations after the recoupment of capital investments.
In January 2022, resources company BHP announced it will invest up to USD 100 million to accelerate the development of the Kabanga Nickel Project, and BHP committed additional capital into Lifezone Limited to advance the roll-out of its patented hydrometallurgical technology to ensure that Class 1 battery-grade nickel, copper, and cobalt will be produced in Tanzania.
Investment Opportunities in Tanzania's Nickel Sector
Tanzania offers a compelling entry point into the global battery-metals value chain through the Kabanga project, whose scale and grade support integrated mine-to-refined-metal economics.
Downstream, the planned hydrometallurgical refinery in Kahama, Shinyanga, opens opportunities for engineering, chemicals supply, logistics, and specialised services linked to the production of Class 1 battery-grade nickel, copper, and cobalt in-country.
Upstream, the Kapalagulu Intrusion, Ntaka Hill, and Kabulwanyele license areas continue to host laterite and sulfide targets suitable for junior exploration partnerships and joint ventures aligned with the East African Nickel Belt geology.
Last Update: July 2026
References
- https://www.atsdr.cdc.gov/toxprofiles/tp15.pdf
- Historical Statistics on Mineral Commodities in the United States | U.S. Geological Survey
- NIST: Atomic Spectra Database - Energy Levels Form
- ニッケル - Web NDL Authorities
- A dinuclear nickel(I) dinitrogen complex and its reduction in single-electron steps - PubMed
- A stable tetraalkyl complex of nickel(IV) - PubMed
