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DAR ES SALAAM (Reuters) - Tanzania and UK-based mining firm Kabanga Nickel Limited signed a framework agreement on Tuesday to jointly develop the Kabanga nickel project formerly owned by Barrick Gold and Glencore.
Foreign minister Palamagamba Kabudi said during a signing ceremony in Bukoba that the government would own a 16% undiluted free-carried interest in the nickel project through a new joint venture company, Tembo Nickel Corporation, 84% owned by Kabanga Nickel.
By law, Tanzania’s government gets a 16% stake in all mining projects in the country.
Nickel is a key electric car battery material and Kabanga - in Tanzania’s northwest - is the world’s largest development-ready, high-grade nickel sulfide deposit, according to Kabanga Nickel. It is estimated to contain more than 1.52 million tonnes of nickel.
Tanzania and UK-based mining firm Kabanga Nickel Limited signed a framework agreement on Tuesday to jointly develop the Kabanga nickel project formerly owned by Barrick Gold and Glencore.