British miner Kabanga Nickel, formerly known as LZ Nickel, has inked a framework agreement with the government of Tanzania to develop the world’s largest battery-grade nickel sulphide deposit, in the country’s northwestern.
As part of the deal, the parties have created a joint company called Tembo Nickel Corp., which will mine, process and refine class 1 nickel with cobalt and copper co-products.
Kabanga Nickel is the new entity’s majority owner with an 84% stake. Tanzania owns the remaining 16%, which is the government’s usual stake in all of the country’s mining projects.
Economic benefits from the Kabanga nickel project, formerly owned by Barrick Gold (TSX: ABX) (NYSE: GOLD) and Glencore (LON: GLEN), will be shared equally between the two shareholders, the parties said in the statement.
Tanzania, Africa’s fourth-largest gold producer, has sought in recent years higher revenues from its vast mineral resources by overhauling the fiscal and regulatory regime of its mining sector.
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