Vertically Integrated Plan includes Hydrometallurgical Refinery at Kahama
$2.37 Billion After-Tax NPV (8%) and 22.9% After-Tax IRR at $8.49 per Pound Nickel Price
Initial Assessment Proposes a 22-Year Mine Plan at Average 2.39% Nickel Equivalent Grade
Webcast with Technical Leadership Team at 10 AM ET on Tuesday, June 3, 2025
NEW YORK–(BUSINESS WIRE)–$LZM #BatteryMetals–Lifezone Metals Limited’s (NYSE: LZM) Chief Executive Officer, Chris Showalter, and Chief Operating Officer, Gerick Mouton, announce today the results from the Initial Assessment for its flagship Kabanga Nickel Project in northwest Tanzania. The Initial Assessment evaluates a vertically integrated mining, processing and refining operation, commencing with a high-grade nickel sulfide underground mine and concentrator at the Kabanga site, followed five years later by a hydrometallurgical refinery at Kahama. The study covers the Main, MNB, Kima, North, and Tembo zones and is based on the December 2024 Mineral Resource Update (refer to Lifezone’s December 5, 2024 news release). The Initial Assessment Technical Report Summary has been filed on Form 6-K with the U.S. Securities and Exchange Commission and made available on EDGAR and the Company’s investor relations website.
Lifezone expects to complete the Kabanga Feasibility Study Technical Report Summary in July 2025, which will focus on the initial development phase of the underground mine and concentrator.
Initial Assessment Technical Report Summary highlights:
This Initial Assessment is preliminary in nature and the economic analysis includes Inferred Mineral Resources that are considered too speculative geologically to have modifying factors applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that this economic assessment will be realized.
- 22-year mine plan with a 3.4 million tonnes per annum underground mining operation with total production of 67.9 million tonnes grading 1.93% nickel, 0.26% copper and 0.14% cobalt.
- 3.4 million tonnes per annum concentrator, producing high-grade nickel, copper, and cobalt concentrate containing a total of 1.15 million tonnes of nickel, 171,000 tonnes of copper and 87,000 tonnes of cobalt.
- Hydrometallurgical refinery production design capacity of up to 50,000 tonnes per annum of nickel contained in battery-grade sulfate, up to 7,000 tonnes per annum of London Metal Exchange Grade A 99.99% copper cathode and up to 4,000 tonnes per annum of cobalt in sulfate.
- Pre-production capital cost of $991 million, which includes a contingency of 16.1%, with total mine plan revenue from sales estimated at approximately $23.68 billion and after-tax free cash flow of $8.03 billion.
- After-tax net present value of $2.37 billion using an 8.0% discount rate and after-tax internal rate of return of 22.9%, based on flat metal prices of $8.49 per pound nickel, $4.30 per pound copper, and $18.31 per pound cobalt.
- Low all-in sustaining costs for refined nickel products averaging $2.71 per pound, net of copper and cobalt by-product credits.
Mr. Showalter commented: “The Kabanga Nickel Project represents a rare opportunity to develop a large-scale, high-grade nickel Mineral Resource with robust economics and a clear staged development path to production. The Initial Assessment highlights the project’s potential to deliver positive returns over a long life, supported by a low-cost operating profile, with approximately 80% of the project’s value attributed to the Kabanga mine and concentrator. Our partnership with the Government of Tanzania has been instrumental in advancing the project, and Lifezone remains aligned in our commitment to responsible development and long-term value creation. With the Feasibility Study on track for completion in July, we are very well-positioned to advance the project.”
Mr. Mouton added: “Today marks a significant and historic milestone in the nearly five-decade journey of the Kabanga Nickel Project. For the first time, Lifezone has successfully completed and publicly disclosed a technical-economic Initial Assessment in accordance with U.S. SEC Regulation S-K 1300. This landmark disclosure confirms the reasonable prospects for economic extraction and affirms the project’s robust foundation. The Initial Assessment underscores the technical integrity and scalability of Kabanga. Through disciplined engineering and extensive analysis, the Lifezone team has systematically de-risked the development of the underground mine and concentrator. The adopted staged development approach provides a high level of confidence in our ability to deliver a project that is both economically resilient and operationally robust. We remain focused on maintaining this momentum and look forward to the planned completion and release of the Feasibility Study in July 2025.”
TUESDAY: Webcast with Lifezone’s technical leadership team at 10:00 AM ET
The company invites shareholders, investors, and members of the media to join a virtual presentation and discussion of the key highlights of the Initial Assessment.
- Date: Tuesday, June 3, 2025.
- Time: 10:00 AM Eastern Time.
- Location: Virtual (please click the webcast registration link).
The presentation slides will be available on Lifezone’s website, and the webcast will be archived and accessible for replay for a limited time after the event.
Figure 1: Kabanga Nickel Project location in Tanzania.
Figure 2: Overview of the Kabanga site camp.
Kabanga Nickel Project Initial Assessment overview
The Initial Assessment outlines a vertically integrated development plan for the Kabanga Nickel Project, proposing a 3.4 million tonnes per annum underground mining operation processing a total of 67.9 million tonnes of mill feed. The average feed grade is 1.93% nickel, 0.26% copper and 0.14% cobalt, sourced from the Main, MNB, Kima, North and Tembo zones. This supports an estimated 22‑year mine plan.
Nickel, copper and cobalt recoveries are expected to average 87.3%, 95.7% and 89.6%, respectively, through conventional froth flotation. The resulting 17.3% nickel-rich concentrate, containing low levels of deleterious elements, will be exported during the first five years of operation and prior to the commissioning of the Kahama hydrometallurgical refinery. The refinery has a designed production capacity of 50,000 tonnes per annum of nickel as battery-grade nickel sulfate, 7,000 tonnes per annum of London Metal Exchange Grade A 99.99% copper cathode and 4,000 tonnes per annum of cobalt as cobalt sulfate.
The Initial Assessment contemplates pre-production capital expenditures of $991 million, which includes a contingency of 16.1%, capitalized operating expenses of $152 million and $751 million in growth capital – primarily for the refinery. Sustaining capital, including closure costs, is estimated at $1.56 billion. A 2.5-year construction period is planned for the mine and concentrator.
The project economics made use of long-term consensus metal prices. With the metal price assumptions of $8.49 per pound of nickel, $4.30 per pound of copper and $18.31 per pound of cobalt, the Initial Assessment estimates an after-tax net present value (8%) of $2.4 billion and an after-tax internal rate of return of 22.9%.
Table 1: Summary of the Initial Assessment Results.
| Kabanga Mine and Concentrator |
|
| Mine Plan |
22 years |
| Total Mill Feed |
67.9 Mt |
| Nameplate Mill Throughput |
3.4 Mtpa |
| Average Nickel Feed Grade |
1.93% |
| Average Copper Feed Grade |
0.26% |
| Average Cobalt Feed Grade |
0.14% |
| Average Nickel Recovery |
87.3% |
| Average Copper Recovery |
95.7% |
| Average Cobalt Recovery |
89.6% |
| Total Concentrate Produced |
7,263 kt wet |
| Average Nickel Concentrate Grade |
17.3% |
| Moisture Content of Concentrate |
9.0% |
| Total Nickel Production (in concentrate) |
1,146 kt |
| Total Copper Production (in concentrate) |
171 kt |
| Total Cobalt Production (in concentrate) |
87 kt |
| Kahama Refinery |
|
| Average Nickel Refinery Recovery |
97.2% |
| Average Copper Refinery Recovery |
93.0% |
| Average Cobalt Refinery Recovery |
97.7% |
| Total Nickel Sulfate Produced |
3,419 kt |
| Total Copper Cathode Produced |
110 kt |
| Total Cobalt Sulfate Produced |
272 kt |
| Operating Costs |
|
| Mining |
$54.24/t processed |
| Concentrator and Infrastructure |
$12.37/t processed |
| Kahama Refinery |
$18.57/t processed |
| Owner’s Cost, Administration and Overhead Costs |
$4.88/t processed |
| Total Operating Costs |
$90.06/t processed |
| All-In Sustaining Costs |
|
| Mining |
$1.60/lb payable Ni |
| Concentrator |
$0.36/lb payable Ni |
| G&A |
$0.12/lb payable Ni |
| Concentrate Transport and Insurance |
$0.22/lb payable Ni |
| Refinery – Kahama, Transport and Insurance |
$0.81/lb payable Ni |
| Total Cash Cost (before by-product credits) |
$3.11/lb payable Ni |
| Royalties |
$0.72/lb payable Ni |
| Sustaining Capital Expenditures |
$0.64/lb payable Ni |
| All-In Sustaining Costs (before by-product credits) |
$4.47/lb payable Ni |
| Copper By-Product Credit |
-$0.56/lb payable Ni |
| Cobalt By-Product Credit |
-$1.20/lb payable Ni |
| Total All-In Sustaining Costs |
$2.71/lb payable Ni |
| Capital Expenditures |
|
| Pre-Production Capex |
$991M |
| Capitalized Opex |
$152M |
| Growth Capex |
$751M |
| Sustaining Capex (incl. Closure) |
$1,557M |
| Valuation Metrics |
|
| Flat-Lined Nickel Price |
$8.49/lb |
| Flat-Lined Copper Price |
$4.30/lb |
| Flat-Lined Cobalt Price |
$18.31/lb |
| Discount Rate |
8.0% |
| After-Tax Net Present Value |
$2,374 |
| After-Tax Internal Rate of Return |
22.9% |
| Payback Period from Final Investment Decision (incl. 2.5-year construction period) |
9.8 years |
| Capital Efficiency (NPV/Pre-Production Capex incl. Capitalized Opex) |
2.1 |
| Capital Efficiency (NPV/Pre-Production + Growth Capex) |
1.3 |
Table 2: Kabanga Mineral Resource Estimates3 as at December 4, 2024.
| Mineral Resource Classification | Lifezone Tonnage3 |
Grades (%) | Recovery (%) | |||||
| (million tonnes) | NiEq24 | Nickel | Copper | Cobalt | Nickel | Copper | Cobalt | |
| MINERAL RESOURCE ALL ZONES – Massive Sulfide plus Ultramafic | ||||||||
| Measured |
15.9 |
2.48 |
1.95 |
0.26 |
0.16 |
82.7 |
92.0 |
85.4 |
| Indicated |
31.0 |
2.69 |
2.16 |
0.30 |
0.16 |
82.9 |
92.6 |
85.3 |
| Measured + Indicated |
46.8 |
2.62 |
2.09 |
0.29 |
0.16 |
82.8 |
92.4 |
85.3 |
| Inferred |
11.3 |
2.59 |
2.08 |
0.28 |
0.15 |
83.7 |
93.7 |
86.5 |
|
1. |
This table reports the Mineral Resources for the combined massive sulfide and ultramafic mineralization types. |
||
|
2. |
There are no Mineral Reserves to report as at date of this Initial Assessment Technical Report Summary. |
||
|
3. |
Mineral Resources are reported showing only the Lifezone-attributable tonnage portion, which is 69.713% of the total. |
||
|
4. |
Cut-off applies to NiEq24, which is derived using a nickel price of USD9.50/lb, copper price of USD4.50/lb, and cobalt price of USD23.00/lb with allowances for recoveries, payability, deductions, transport, and royalties. |
||
|
5. |
NiEq24 formulae are: MSSX NiEq24 = Ni + (Cu x 0.454) + (Co x 2.497); UMAF NiEq24 = Ni + (Cu x 0.547) + (Co x 2.480). |
||
|
6. |
The point of reference for Mineral Resources is the point of feed into a concentrator. |
||
|
7. |
All Mineral Resources in the 2024 Mineral Resource Update were assessed for reasonable prospects for economic extraction by reporting only material above cut-off grades of: MSSX NiEq24>0.73% and UMAF NiEq24>0.77%. |
||
|
8. |
Totals may vary due to rounding. |
The Initial Assessment is based on the December 2024 Mineral Resource Update, which includes 46.8 million tonnes of attributable Measured and Indicated Mineral Resources grading 2.09% nickel, 0.29% copper and 0.16% cobalt, and 11.3 million tonnes of attributable Inferred Mineral Resources grading 2.08% nickel, 0.28% copper and 0.15% cobalt. The Kabanga Nickel Project is 69.713% owned by Lifezone, and all Mineral Resources are shown on an attributable to Lifezone basis.
For a discussion of Lifezone’s Framework Agreement with the Government of Tanzania relating to the Kabanga Nickel Project, including equitable sharing of the economic benefits, see Item 10 C of the Lifezone‘s Annual Report on Form 20-F for the year ended December 31, 2024 on the Company’s website or sec.gov.
The Initial Assessment is preliminary in nature and includes economic analyses that incorporate Inferred Mineral Resources, which are considered too speculative geologically to be classified as Mineral Reserves. There is no certainty that the results of the Initial Assessment will be realized.
For a scenario excluding Inferred Mineral Resources, the Initial Assessment estimates an after-tax net present value (8.0%) of $2.02 billion and an after-tax internal rate of return of 23.0%, reflecting a slightly higher average feed grade but lower total tonnage.
The capital cost, operating cost and sustaining capital cost estimates were prepared for the project as part of the Initial Assessment. The estimates are classified as being at an Association for the Advancement of Cost Engineering Class 5 level, with an accuracy range of ±50%, consistent with early-stage evaluation standards under Regulation S-K 1300. These estimates support the economic analysis undertaken for the Initial Assessment and demonstrate the reasonable prospects for economic extraction of the reported Mineral Resources.
Figure 3: Production schedule with Measured, Indicated and Inferred Mineral Resources.
The Initial Assessment also outlines a sustainable tailings management strategy in line with Global Industry Standard on Tailings Management and Australian National Committee on Large Dams best practices. Approximately 52% of non-pyrrhotite tailings will be returned underground as paste aggregate fill, blended at 55% tailings and 45% waste rock with cement. The remaining pyrrhotite tailings will be stored in a fully lined downstream constructed tailings storage facility with a leakage collection system and subaqueous deposition to mitigate oxidation risks. The tailing storage facility is designed to accommodate up to 50 million tonnes and withstand a 1:10,000-year storm event. Closure plans include a water-shedding landform and multi-layer cover system. The design has been reviewed by an Independent Tailings Review Board, Government of Tanzania regulators and other industry experts.
Robust Initial Assessment economics for a globally significant source of nickel, copper and cobalt
A preliminary mine design, accessing Measured and Indicated Mineral Resources as well as Inferred Mineral Resources, outlines a 22-year mine plan for the project, with total underground production of 67.9 million tonnes grading 1.93% nickel, 0.26% copper and 0.14% cobalt. During the first five years of operation, the project will export a high-grade nickel-copper-cobalt concentrate while the hydrometallurgical refinery at Kahama is being developed. Once operational, the refinery will promote in-country beneficiation by producing battery-grade nickel and cobalt sulfate products and London Metal Exchange-grade copper cathode, in line with the Government of Tanzania’s expectations.
Total operating costs are projected to average approximately $90 per tonne processed, inclusive of mining, processing, refining, general and administrative, and logistics. AISC for refined nickel is estimated to average $2.71 per pound, net of copper and cobalt by-product credits.
Pre-production capital expenditures are estimated at $991 million, with a 16.1% contingency, covering underground mine development, concentrator construction, tailings storage facility, and supporting infrastructure. Capitalized operating costs are expected to total $152 million. Growth capital of $751 million is primarily allocated to the construction of the Kahama refinery. Sustaining capital over the mine plan is projected at $1.56 billion, including closure costs.
Figure 4: Estimated project cash flows.
The project economics made use of long-term consensus metal prices. Metal price assumptions, of $8.49 per pound of nickel, $4.30 per pound of copper, and $18.31 per pound of cobalt, were used in the Initial Assessment to estimate total project revenue of $23.68 billion. The project is expected to generate $8.03 billion of after-tax undiscounted free cash flow, with an after-tax net present value (8.0%) of $2.37 billion and an after-tax internal rate of return of 22.9%.
The Initial Assessment also demonstrates strong downside resilience to nickel price fluctuation. Applying a sensitivity analysis at $7.00 per pound nickel price, the project maintains an after-tax net present value of $1.48 billion and an after-tax internal rate of return of 17.9%. This economic robustness is underpinned by the project’s high-grade Mineral Resource, valuable copper and cobalt by-products, low all-in sustaining costs and high capital efficiency.
Figure 5: Sensitivity analysis of after-tax net present value (8%).
Phased underground mine development enhances capital efficiency and operational readiness
The Initial Assessment outlines a phased underground mine development strategy at Kabanga, designed to optimize capital efficiency and support an achievable production ramp-up. The mine will be accessed via declines from two boxcuts at the North and Tembo zones. Kima zone will share access from the North decline, while the Main and MNB zones are accessed via the North Mine. The underground operation will ramp up to a steady state rate of 3.4 million tonnes per annum which will feed the concentrator.
Figure 6: Proposed mine design.
Mining will be conducted using longhole stoping with paste backfill, with level spacing of 25 meters and stope strike lengths ranging from 20 to 30 meters. The mining sequence prioritizes the high-grade portions of the North zone. The North and Kima zones are expected to supply approximately 65% of the total mineralized material, followed by Tembo (25%) and Main and MNB (10%). The mine design incorporates detailed geotechnical modeling, ventilation planning, and a robust backfill system to ensure safe and efficient operations.
The development schedule includes a 2.5-year construction period followed by a 2.5-year ramp-up phase, during which critical infrastructure such as ventilation raises, pumping systems, and underground services will be established. The first five years of mining will be executed by a contract mining firm selected through a competitive tender process, ensuring experienced execution and cost control during the early stages of operation.
Figure 7: Proposed mine design sequence (in years).
Further Exploration Targets offer significant upside potential
The Initial Assessment Technical Report Summary also discloses an overall Exploration Target of 17.5 to 23.5 million tonnes grading 1.9% to 2.1% nickel equivalent from four high-priority Exploration Targets within the Special Mining Licence, offering the potential to extend the mine plan and potentially enhance project value. These Exploration Targets, located at Safari Link, Safari Extension, Rubona Hill, and Block 1 South, are based on geophysical anomalies, historical drilling and geological continuity with known mineralized zones.
The ranges of potential tonnage and grade of the Exploration Targets are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for these target areas. It is uncertain if further exploration will result in the estimation of a Mineral Resource.
Table 3: Exploration Target summary.
| Exploration Target | Mineralization Type |
Estimated Tonnage (Mt) |
Estimated Grade (NiEq24%) |
| Safari Link | Ultramafic | 1.5 – 2.0 | 1.2 – 1.4% |
| Massive Sulfide | 3.0 – 3.5 | 2.5 – 2.8% | |
| Total | 4.5 – 5.5 | 2.1 – 2.3% | |
| Safari Extension | Massive Sulfide plus Ultramafic | 3.0 – 4.0 | 1.8 – 2.0% |
| Rubona Hill | Ultramafic | 8.0 – 10.0 | 1.8 – 2.0% |
| Block 1 South | Ultramafic | 2.0 – 4.0 | 1.8 – 2.0% |
| Total All |
– |
17.5 – 23.5 | 1.9 – 2.1% |
Lifezone has allocated a portion of the growth capital expenditures to support drilling and geophysical surveys across these targets, with the aim of delineating additional resources and supporting potential future expansions.
Figure 8: Location of Safari Link and Safari Extension exploration targets with airborne Versatile Time-Domain Electromagnetic background and interpreted major faults.
Efficient sulfide concentrate production with high recoveries at the Kabanga concentrator
The Initial Assessment outlines a conventional concentrator facility at Kabanga, designed to process 3.4 million tonnes per annum and produce a high-grade nickel-copper-cobalt concentrate. The flowsheet, comprising crushing, wet grinding, flotation and dewatering, has been developed through extensive metallurgical testwork to suit the deposit’s mineralogy, including massive sulfide, semi-massive sulfide and ultramafic-hosted zones.
The concentrator is expected to achieve average metallurgical recoveries of 87.3% for nickel, 95.7% for copper and 89.7% for cobalt. The resulting concentrate, grading approximately 17.3% nickel, 2.6% copper and 1.3% cobalt, is low in deleterious elements and well-suited for downstream refining.
The high-grade, low-impurity nature of Kabanga’s concentrate has received strong interest from potential offtake partners for both nickel concentrate and refined battery-grade products. Indicative, non-binding terms have been obtained for 100% of the concentrate produced during the first five years of operations, prior to the commissioning of the Kahama refinery. Lifezone is also exploring strategic partnerships to support long-term marketing of nickel and cobalt sulfates into the electric vehicle markets.
High recoveries of battery-grade metals enabled by hydrometallurgical refining at Kahama
The Initial Assessment includes the Kahama refinery as a cornerstone of Lifezone’s vertically integrated strategy, employing a hydrometallurgical process to produce battery-grade nickel and cobalt sulfate products and London Metal Exchange Grade A 99.99% copper cathode. In the Initial Assessment, a refinery demonstration plant will be constructed and operated at the Kahama site once nickel concentrate is available from Kabanga, but prior to the full-scale refinery construction and operation. This will be undertaken to optimize and finalize the hydrometallurgical flowsheet and further de-risk the refinery.
Designed to process concentrate from the Kabanga mine, the refinery is expected to achieve average metal recoveries from concentrate of 97.2% for nickel, 93.0% for copper and 97.7% for cobalt. The flowsheet incorporates pressure oxidation, neutralization, solvent extraction, electrowinning and crystallization, enabling the designed production of approximately 50,000 tonnes per annum of nickel as nickel sulfate, 7,000 tonnes of copper cathode and 4,000 tonnes of cobalt as cobalt sulfate. All products are expected to meet stringent purity standards for use in electric vehicle batteries.
Figure 9: Allocated refinery site at Kahama.
Strategically located within Tanzania’s Buzwagi Special Economic Zone, the Kahama refinery benefits from existing bulk infrastructure and supports the country’s industrialization goals. By refining metals in-country with hydrometallurgy, the project is expected to have a reduced carbon dioxide emissions footprint compared to traditional smelting and overseas processing and enhances supply chain transparency.
Integrated logistics network strengthened by national infrastructure upgrades
The Kabanga Nickel Project is supported by a logistics network that connects the Kabanga mine site to the Kahama refinery and international export markets. Nickel-copper-cobalt concentrate will be transported approximately 348 kilometers by road from Kabanga to the Isaka Dry Port (rail terminal), using third-party haulage and sealed Flexible Bulk Containers. From Isaka, the concentrate will be transferred onto the Standard Gauge Railway, which is expected to be operational in 2026, for shipment to the Kwala Dry Port and then via dedicated “Port Link” to the Port of Dar es Salaam, into bulk sea freight vessels.
Contacts
Investor Relations – North America
Evan Young
SVP: Investor Relations & Capital Markets
evan.young@lifezonemetals.com
Investor Relations – Europe
Ingo Hofmaier
Chief Financial Officer
ingo.hofmaier@lifezonemetals.com
