Lifezone Metals Files the Feasibility Study Technical Report Summary for the Kabanga Nickel Project in Tanzania
18.07.2025 - 14:06:06
Confirms Robust Economics and Declares First-Ever Mineral Reserves for the World-Class Nickel Sulfide Project
Proven and Probable Mineral Reserves of 52.2 Million Tonnes (100% Basis; LZM Attributable: 43.9 Million Tonnes) Grading 1.98% Nickel, 0.27% Copper and 0.15% Cobalt
18-Year Mine Life with Steady-State Production Rate of 3.4 Million Tonnes per Annum
Total Production of 902,000 Tonnes of Nickel, 134,000 Tonnes of Copper and 69,000 Tonnes of Cobalt in Intermediate Product over the Life of Mine (100% Basis)
First Quartile Cost of Production, with Low All-In Sustaining Costs Averaging $3.36 per Pound Payable Nickel
Low Initial Capital Intensity of Approximately $18,800 per Tonne per Annum of Nickel Production
$1.58 Billion After-Tax NPV (8%) and 23.3% After-Tax IRR at $8.49 per Pound Nickel Price with Payback of 4.5 Years from First Production
Webcast with Lifezone’s Leadership Team on Monday, July 21, 2025 at 10 AM ET
Lifezone Metals Limited’s (NYSE: LZM) Chief Executive Officer, Chris Showalter, and Chief Operating Officer, Gerick Mouton, today announced the filing of the Feasibility Study Technical Report Summary for Lifezone’s flagship Kabanga Nickel Project, located in northwest Tanzania. The Feasibility Study was prepared in accordance with Subpart 229.1300 of Regulation S?K (S-K 1300) and supports the declaration of Mineral Reserves for the first time ever in Kabanga’s 50-year history from discovery. The Feasibility Study builds on the foundation established by the Initial Assessment (refer to Lifezone’s June 2, 2025 news release) and focuses only on the initial development phase of Kabanga, which includes a 3.4 million tonnes per annum mechanized underground mine, mill, concentrator, tailings storage facility, and supporting infrastructure.
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Figure 1: Overview of the Kabanga site camp.
and the Company’s investor relations website.
Feasibility Study Technical Report Summary highlights:
This Feasibility Study is based on detailed design and engineering to support an Association for the Advancement of Cost Engineering Class 3 cost estimate (±15%) and modifying factors to support the declaration of Mineral Reserves. It demonstrates that the Kabanga Nickel Project can be developed and operated in a technically feasible and economically viable manner.
The Feasibility Study is based solely on Measured and Indicated Mineral Resources converted to Proven and Probable Mineral Reserves respectively, and does not include Inferred Mineral Resources in the mine plan or economic analysis. The Kabanga Nickel Project is 84% owned by Lifezone and 16% by the Government of Tanzania. Project economics presented below are shown on a 100% basis.
- 18-year life of mine mining operation with total ore production of 52.2 million tonnes (100% basis; Lifezone attributable is: 43.9 million tonnes) grading 1.98% nickel, 0.27% copper and 0.15% cobalt.
- 3.4 million tonnes per annum concentrator, producing a high-grade nickel, copper, and cobalt concentrate grading 17.5% nickel, as an intermediate product for downstream processing, and containing a total of 902,000 tonnes of nickel, 134,000 tonnes of copper and 69,000 tonnes of cobalt over the life of mine (100% basis).
- Low all-in sustaining costs averaging $3.36 per pound of nickel contained in concentrate, net of copper and cobalt by-product credits. Based on analysis provided by CRU International Ltd. (CRU Group), Kabanga will fall within the first quartile of the global nickel cost curve.
- Pre-production capital costs of $942 million, including 9.7% contingency. Total life of mine capital of $2.49 billion includes pre-production capital costs, contingency, capitalized operational expenditures, growth capital, sustaining and closure costs. Life of mine revenue from sales totals $14.1 billion, net of realization costs, with after-tax free cash flow of $4.6 billion.
- After-tax net present value of $1.58 billion using an 8.0% discount rate and after-tax internal rate of return of 23.3%, based long-term consensus metal prices of $8.49 per pound nickel, $4.30 per pound copper, and $18.31 per pound cobalt.
- The Government of Tanzania is expected to receive an equitable share of the total economic benefits from the Kabanga Nickel Project through the Economic Benefit Sharing Principle (EBSP). This includes dividends from its 16% free-carried interest, $1.2 billion in royalties, fees, levies and duties, and $2.4 billion in corporate income taxes estimated in the Feasibility Study economic model.
Lifezone’s Board of Directors has approved the Kabanga Nickel Project Feasibility Study and directed management to commence with the execution readiness phase, including the project financing process leading to a Final Investment Decision. During this execution readiness phase, Lifezone will advance pending permitting, remaining approvals and commercial tenders, while finalizing technical work to support critical path construction activities. A diversified funding strategy is underway, and discussions are ongoing with strategic investors and lenders. Kabanga’s strong economics and alignment with global critical minerals priorities positions it well for sustainable financing.
Mr. Showalter commented: “The completion of the Feasibility Study is a defining moment for Lifezone and the Kabanga Nickel Project. It confirms the technical and economic strength of one of the world’s most significant undeveloped nickel sulfide deposits. With declared Mineral Reserves, robust economics and path to Final Investment Decision targeted for 2026, we are advancing a project that not only delivers strategic value to the critical metals supply chain, but also creates long-term economic benefits for Tanzanians. Our commitment to responsible mining, local partnerships and in-country beneficiation remains central to our vision of enabling cleaner supply chains.”
Mr. Mouton added: “The Feasibility Study underscores the depth of technical rigor and strategic collaboration behind this world-class project. We have defined a capital-efficient and technically sound operation that harnesses Tanzania’s expanding infrastructure and responds to global demand for responsibly sourced critical metals. Our focus remains on minimizing environmental impact, maintaining transparent engagement with host communities, and delivering enduring value for all stakeholders. This historic milestone would not have been possible without the dedication and expertise of the many consultants and contractors who contributed to the study’s success and we thank them for their professionalism and commitment.”
MONDAY: Webcast with Lifezone’s 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 Feasibility Study.
- Date: Monday, July 21, 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: Overview of the Kabanga site camp.
Table 1: Summary of the Feasibility Study results (100% basis).
| Kabanga Mine and Concentrator (100% basis) |
|
| Mine Life |
18 years |
| Total Mill Feed |
52.2 Mt |
| Nameplate Mill Throughput |
3.4 Mtpa |
| Average Nickel Feed Grade |
1.98% |
| Average Copper Feed Grade |
0.27% |
| Average Cobalt Feed Grade |
0.15% |
| Average Nickel Recovery |
87.3% |
| Average Copper Recovery |
95.6% |
| Average Cobalt Recovery |
89.6% |
| Total Concentrate Produced |
5,170 kt dry |
| Average Nickel Concentrate Grade |
17.5% |
| Moisture Content of Concentrate |
9.0% |
| Total Nickel Production (in concentrate) |
902 kt |
| Total Copper Production (in concentrate) |
134 kt |
| Total Cobalt Production (in concentrate) |
69 kt |
| Operating Costs |
|
| Mining |
$52.18/t processed |
| Processing |
$12.15/t processed |
| Owner’s Cost and Mining Licence Fee |
$5.77/t processed |
| Total Site Operating Costs |
$70.10/t processed |
| All-In Sustaining Costs |
|
| Mining |
$1.75/lb payable Ni |
| Processing |
$0.41/lb payable Ni |
| G&A |
$0.19/lb payable Ni |
| Concentrate Transport and Freight Insurance |
$0.55/lb payable Ni |
| Total Cash Cost (before by-product credits) |
$2.90/lb payable Ni |
| Royalties |
$0.76/lb payable Ni |
| Sustaining Capital Expenditures |
$0.82/lb payable Ni |
| All-In Sustaining Costs (before by-product credits) |
$4.48/lb payable Ni |
| Copper By-Product Credit |
-$0.41/lb payable Ni |
| Cobalt By-Product Credit |
-$0.71/lb payable Ni |
| Total All-In Sustaining Costs |
$3.36/lb payable Ni |
| Capital Expenditures |
|
| Pre-Production Capital Expenditures (incl. contingency) |
$942M |
| Capitalized Operating Expenditures |
$168M |
| Growth Capital Expenditures |
$42M |
| Sustaining Capital Expenditures (incl. Closure) |
$1.34B |
| Total Capital Costs (incl. contingency) |
$2.49B |
| Valuation Metrics |
|
| Long-Term Nickel Price |
$8.49/lb |
| Long-Term Copper Price |
$4.30/lb |
| Long-Term Cobalt Price |
$18.31/lb |
| Discount Rate |
8.0% |
| After-Tax Net Present Value |
$1.58B |
| After-Tax Internal Rate of Return |
23.3% |
| After-Tax Payback Period from first production |
4.5 years |
| Capital Efficiency (NPV/Pre-Production Capex & Capitalized Opex) |
1.4 |
Kabanga Nickel Project Feasibility Study overview
The Feasibility Study outlines a development plan for the Kabanga Nickel Project, focused on the construction and operation of a 3.4 million tonnes per annum underground mine and concentrator. The mine will produce a total of 52.2 million tonnes of ore (100% basis) over an 18-year life of mine, with an average grade of 1.98% nickel, 0.27% copper and 0.15% cobalt, sourced from the North, Tembo and Main zones.
Metallurgical concentrator recoveries are expected to average 87.3%, 95.6%, and 89.6% for nickel, copper, and cobalt respectively, achieved through conventional froth flotation. The concentrator will produce approximately 350,000 tonnes (dry) per annum nickel-copper-cobalt flotation concentrate containing 17.7% nickel, with only low levels of deleterious elements, at the steady-state 3.4 million tonnes per annum production rate. The high-grade nickel-copper-cobalt intermediate product will be transported to the Port of Dar es Salaam for export to international customers.
The Kabanga Nickel Project is expected to deliver industry-leading cost performance. According to benchmarking completed by CRU Group, Kabanga’s all-in sustaining costs will place it firmly within the first quartile of the global nickel cost curve, underscoring the project’s competitiveness against other nickel sulfide and laterite producers. This low-cost profile is driven by Kabanga’s high-grade nickel mineralization, strong metallurgical recoveries, and valuable copper and cobalt by-products.
Figure 2: CRU Group’s nickel all-in sustaining costs for 2025.
DATA: CRU Nickel Cost Model and CRU Nickel Asset Services. Cost estimates for the Kabanga Project have been provided by Lifezone Metals using CRU price assessments for by-product credits. The chart excludes a small volume of platinum group metals (PGM) miners that produce nickel as a by-product. In USD 2024 real terms.
The Feasibility Study estimates pre-production capital expenditures of $942 million, including 9.7% contingency, capitalized operating expenditures of $168 million, sustaining capital expenditures (including closure costs) of $1.34 billion and $42 million of growth capital.
Two years of construction is planned, followed by a four-year ramp-up to full-scale capacity for the mine and concentrator.
The capital cost, operating cost and sustaining capital cost estimates were prepared as part of the Feasibility Study and are classified as Association for the Advancement of Cost Engineering (AACE) Class 3 estimates, with an accuracy range of ±15%, consistent with the standards for a Feasibility Study under S-K 1300. These estimates are based on detailed engineering, vendor quotations and benchmarked data, supporting the declaration of Mineral Reserves and the economic viability of the Kabanga Nickel Project.
Using long-term consensus metal prices of $8.49 per pound nickel, $4.30 per pound copper and $18.31 per pound cobalt, the Feasibility Study generates an after-tax net present value of $1.58 billion at an 8% discount rate and an after-tax internal rate of return of 23.3%.
The Kabanga Nickel Project is 84% owned by Lifezone and 16% by the Government of Tanzania. All Mineral Reserves and Mineral Resources are shown on an attributable to Lifezone basis, except when indicated otherwise. 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.
Figure 3: Kabanga Nickel Project location in Tanzania.
Kabanga is in the northwest of Tanzania, approximately 1,300 kilometers northwest of Dar es Salaam. The Kabanga mine, concentrator, and associated infrastructure are located at the Kabanga Site. The Kabanga Site is reached by 77 kilometers of unpaved public road from the paved National Route B3. Grid electricity is currently supplied to the site by the Tanzania Electric Supply Company Limited (TANESCO) and is sufficient for construction and initial mine development.
Table 2: Kabanga Mineral Reserve Estimates3 as at July 18, 2025.
| Mineral Reserve Classification |
Lifezone |
Grades (%) |
Metallurgical Recovery (%) |
||||
|
(million tonnes) |
Nickel |
Copper |
Cobalt |
Nickel |
Copper |
Cobalt |
|
| Total: Massive Sulfide plus Ultramafic |
|
|
|
|
|
|
|
| Proven |
14.9 |
1.84 |
0.25 |
0.15 |
86.4 |
94.9 |
88.9 |
| Probable |
29.0 |
2.05 |
0.28 |
0.14 |
87.7 |
96.0 |
90.0 |
| Proven + Probable |
43.9 |
1.98 |
0.27 |
0.15 |
87.3 |
95.6 |
89.6 |
| 1. |
The effective date of the Mineral Reserves is July 18, 2025. |
|
| 2. |
Mineral Reserves are reported based on the December 2024 Mineral Resource model. |
|
| 3. |
Mineral Reserves are reported showing the LZM-attributable tonnage portion, which is 84.0% of the total Project Mineral Reserves. |
|
| 4. |
Mineral Reserve cut-offs grades are based on a USD 8.50/lb nickel price, USD 4.24/lb copper price and USD 18.34/lb cobalt price; the overall average nickel, copper and cobalt metallurgical recoveries are 81%, 89%, and 84%, respectively. |
|
| 5. |
Elevated NSR cut-off values were selected for each mine namely, USD 170/t at North (upper), USD 100/t at North (lower) and Tembo, and USD 85/t at Main. |
|
| 6. |
All the cut-off values include allowances for metallurgical recoveries, payability, deductions, transport and royalties. |
|
| 7. |
An economic analysis has been conducted using a long-term nickel price of USD 8.49/lb, copper price of USD 4.30/lb and cobalt price of USD 18.31/lb. |
|
| 8. |
The point of reference for the Mineral Reserves is the point of feed into the processing facility. |
|
| 9. |
Totals may vary due to rounding. |
|
| 10. |
The Ni, Cu, and Co recovery estimates for the respective MSSX and UMIN categories have been calculated using the metallurgical recovery algorithm formulas detailed in Section 10 (Table 10-12 and Table 10-13) and the combined Proven and Probable recovery for each reflects the weighted average recovery based on the tonnage and grade. The total combined recovery for the blend (MSSX+UMIN) reflects the outputs of the same recovery formula applied to the FS mine and processing schedule |
Mineral Reserve estimates have been classified in accordance with the definitions for Mineral Reserves in S-K 1300. Longhole stoping with paste backfill is the mining method which, following ramp-up, will produce 3.4 million tonnes per annum of ore. The Proven and Probable Mineral Reserves were estimated by calculating optimized economic cut-off values for mining underground stopes, in the various mine locations within the mine design.
Table 3: Kabanga Mineral Resource Estimates2 shown exclusive of Mineral Reserves at December 4, 2024.
| Mineral Resource Classification |
Lifezone |
Grades (%) |
Metallurgical Recovery (%) |
|||||
|
(million tonnes) |
NiEq24 |
Nickel |
Copper |
Cobalt |
Nickel |
Copper |
Cobalt |
|
| MINERAL RESOURCE ALL ZONES – Massive Sulfide plus Ultramafic |
|
|
|
|
|
|||
| Measured |
5.9 |
1.54 |
1.21 |
0.16 |
0.10 |
73.2 |
84.1 |
75.3 |
| Indicated |
12.4 |
1.54 |
1.20 |
0.19 |
0.10 |
72.7 |
85.2 |
74.5 |
| Measured + Indicated |
18.3 |
1.54 |
1.20 |
0.18 |
0.10 |
72.9 |
84.9 |
74.7 |
| Inferred |
13.5 |
2.59 |
2.08 |
0.28 |
0.15 |
83.7 |
93.7 |
86.5 |
| 1. |
Mineral Resources in Table 3 are reported exclusive of Mineral Reserves (see Table 2). |
|
| 2. |
Mineral Resources are reported showing only the LZM-attributable tonnage portion, which is 84.0% of the total. |
|
| 3. |
Cut-off applies to NiEq24, which is derived using a nickel price of USD 9.50/lb, copper price of USD 4.50/lb, and cobalt price of USD 23.00/lb with allowances for recoveries, payability, deductions, transport, and royalties. |
|
| 4. |
NiEq24 formulas are: MSSX NiEq24 = Ni + (Cu x 0.454) + (Co x 2.497) and UMIN NiEq24 = Ni + (Cu x 0.547) + (Co x 2.480). |
|
| 5. |
The point of reference for Mineral Resources is the point of feed into a concentrator. |
|
| 6. |
All Mineral Resources in the 2024MRU 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%. |
|
| 7. |
Totals may vary due to rounding. |
Figure 4: Kabanga Nickel Project execution schedule.
Feasibility Study confirms Kabanga as a low-cost, high-grade source of critical metals
The Feasibility Study includes an 18-year mine plan based on a detailed underground mine design, accessing Proven and Probable Mineral Reserves (see Table 2 above). Over the life of mine, the Project will produce a high-grade nickel-copper-cobalt intermediate product.
Total site operating costs are expected to average $70.10 per tonne milled, inclusive of mining, processing and general and administrative costs. On an all-in sustaining cost basis, Kabanga costs are estimated at $3.36 per pound of payable nickel in concentrate, net of copper and cobalt by-product credits.
Figure 5: Kabanga all-in sustaining cost breakdown.
Pre-production capital expenditures are estimated at $942 million, including 9.7% contingency, and covering underground mine development, concentrator construction, tailings storage facility and supporting infrastructure. The project demonstrates strong capital efficiency, with an initial capital intensity of approximately $18,800 per tonne per annum of nickel production – calculated by dividing pre-production capital expenditures by total life of mine contained nickel metal in intermediate product of 902,000 tonnes over 18 years.
Pre-production capitalized operating expenditures are expected to total $168 million. Total project capital over the life of mine is estimated at $2.49 billion, including sustaining capital, closure costs and growth capital.
The Feasibility Study confirms strong project economics under consensus long-term metal prices, including robust free cash flow, a compelling net present value and a high internal rate of return.
Figure 6: Estimated project cash flows.
In addition, the Feasibility Study demonstrates Kabanga’s strong economic resilience across a range of nickel price scenarios. Even under a $7.00 per pound nickel scenario, the Project maintains an after-tax net present value of $909 million and an internal rate of return above 17%. This resilience is underpinned by the Project’s high-grade mineralization, strong metallurgical recoveries, valuable copper and cobalt by-products, low all-in sustaining costs and high capital efficiency. At $10.00 per pound nickel, Kabanga generates an after-tax net present value of $2.3 billion and an internal rate of return above 28%.
Figure 7: Sensitivity analysis of after-tax net present value (8%).
Mine development strategy supports early execution and long-term scalability
The Feasibility Study supports an underground mine at Kabanga, designed to balance early capital efficiency with long-term operational and product marketing flexibility. Access to the underground mining areas will be established via surface declines at both the North and Tembo zones. To support efficient material movement and traffic flow, North Mine includes a second decline for most of its depth, enabling one-way travel for haulage and services and is future proofed for electrification options in the future. The lower portion of North will be accessed via a single decline. Main zone, which will be developed later in the mine life, will be accessed from underground via the North Mine infrastructure. This configuration supports a streamlined ramp-up to a steady-state production rate of 3.4 million tonnes per annum.
Figure 8: Mineral Reserves Mine design.
Mining will be executed using longhole stoping with paste backfill, supported by a robust geotechnical model and engineered for mechanized, safe and efficient extraction. Stope dimensions and sequencing have been optimized to prioritize high-grade zones, particularly in the North Mine, which is expected to contribute the majority of early mill feed. Tembo Mine will provide additional feed from Year 1, with Main Mine supplementing production in later years.
Table 4: Ore mined by zone (100% basis).
| Zone |
Ore Mined |
Ore Proportion |
Grades (%) |
||
|
(million tonnes) |
(%) |
Nickel |
Copper |
Cobalt |
|
| North |
30.5 |
58% |
2.32 |
0.31 |
0.16 |
| Tembo |
16.5 |
32% |
1.58 |
0.22 |
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