By: OrePulse

Lifezone Metals Limited said an independent review has confirmed that resettlement arrangements at its Kabanga Nickel project in Tanzania remain in material alignment with an International Finance Corporation standard on land acquisition and resettlement, a finding that automatically cut by $8 million the cap on deferred payments the company owes BHP for its stake in the project.

The reduction was triggered under a resettlement-review provision written into the agreement Lifezone signed in July 2025 to acquire BHP's 17% stake in Kabanga Nickel Limited. Under that agreement, the cap on the deferred consideration payable to BHP falls automatically each time an independent expert confirms the project's Resettlement Action Plan remains aligned with the International Finance Corporation's Performance Standard 5, which covers land acquisition and involuntary resettlement.

Ed O'Keefe of Synergy Global Consulting, acting as the independent expert, carried out the latest review in August and September 2026. The review included both a desktop assessment of project documentation and a site visit, and concluded that the Kabanga project's Resettlement Action Plan continues to meet the IFC standard. The International Finance Corporation's Performance Standard 5 sets requirements for how companies plan and carry out the resettlement of communities affected by a project, including compensation and support for people who are displaced or lose access to land.

The mechanism built into the BHP agreement ties the deferred consideration to recurring, independently verified confirmation that the resettlement plan remains compliant, rather than to a single one-time assessment. Lifezone said it expects further independent reviews to take place as additional payment milestones under the agreement come due.

With this reduction applied, the remaining deferred consideration owed to BHP consists of a fixed payment of $10 million plus a contingent payment linked to a $28 million reference amount that is indexed to Lifezone's share price.

Lifezone's chief executive, Chris Showalter, said the finding underscored the rigor the company is applying to its resettlement obligations as the Kabanga project continues to move toward development.

Kabanga Nickel Limited holds the Kabanga Nickel project in Tanzania, a nickel, copper and cobalt sulfide deposit. BHP agreed in 2025 to sell its 17% stake in the project to Lifezone, with the sale price structured to include both an upfront payment and the deferred consideration now being reduced through the resettlement-review mechanism. The structure means the final amount Lifezone pays BHP depends partly on the outcome of successive compliance reviews rather than being fixed at signing.

Lifezone Metals is listed on the New York Stock Exchange under the ticker LZM. The company did not disclose the dollar value of the $28 million reference amount's contingent payout, saying only that it is indexed to Lifezone's share price and will be calculated when it falls due.