By: Ecofin Agency

Less than a year after BHP exited Tanzania's Kabanga nickel project, new investors are already lining up to take its place.

Among them is Chinese mining group Lygend Resources. Its reported interest, revealed by Reuters on June 5, underscores how competition for Africa's critical minerals increasingly draws interest from both Chinese and American companies, even within the same projects.

BHP, which previously held a 17% stake in Kabanga, agreed in July 2025 to sell its interest to U.S.-listed Lifezone Metals. The transaction increased Lifezone's ownership to 84%, while the Tanzanian government retained the remaining 16%.

Since then, Lifezone has left the door open to bringing in a new strategic partner. In late April, the company said it had received several expressions of interest from potential investors but did not disclose their identities. According to Reuters, citing sources familiar with the matter, Lygend is now in discussions with Lifezone about a possible investment, although the status of the talks remains unclear.

Financing Needs Meet Strategic Ambitions

For Lygend, one of the world's leading nickel industry players, a move into Kabanga would support efforts to diversify beyond Indonesia, the world's largest nickel producer. For Lifezone, the search for a partner is largely driven by financing needs. The company is preparing to develop a project expected to cost around $942 million and is looking to secure the capital required before construction begins.

Kabanga is one of Africa's most significant undeveloped nickel deposits. According to project estimates, the mine could produce about 902,000 tons of nickel over an 18-year operating life, in addition to copper and cobalt by-products.

Lifezone is already seeking support from the U.S. International Development Finance Corporation (DFC) to help finance the project. The arrival of a new investor could strengthen those efforts, although it remains uncertain how a partnership involving both American and Chinese interests would ultimately be structured.

A New Front in the Critical Minerals Race

The developments at Kabanga reflect a broader trend across Africa, where competition for critical minerals continues to intensify as governments and companies seek secure supplies for the energy transition.

Tanzania has already emerged as one of the battlegrounds in that race. Last year, U.S.-based General Innovation Capital Partners and China's Shenghe Resources competed for influence around the Ngualla rare earths project, another strategic mining asset in the country.

The next few months will be crucial for Kabanga. Lifezone aims to reach a final investment decision by mid-2026, a key milestone that would pave the way for project development.

Before construction can begin, the company must also secure a mining license from Tanzanian authorities. How the financing package ultimately comes together—and whether Lygend becomes part of it—will offer another indication of how global competition for Africa's critical minerals is evolving.