On March 17, 2025, Tanzanian government, through the Ministry of Minerals directed Tembo Nickel Corporation Ltd to ensure the timely implementation of the Kabanga Nickel Project, which aims to extract and refine nickel within the country.
The directive was issued by the Minister for Minerals, Anthony Mavunde, during a presentation on the progress of the Kabanga Nickel Project in Dodoma.
He emphasized that the project must be executed without delays to drive growth in the mining sector.
"This is a significant and crucial project for the development of the mining sector. We will ensure that all outstanding matters are resolved through negotiations between the government and the investor. On the investor's part, it is essential to fulfill all requirements to expedite the development of the mine," said Mavunde.
The Kabanga Nickel Project, one of Tanzania’s most strategic mining initiatives, is expected to enhance the country's position in the global nickel supply chain.
Nickel, a critical component in battery production and stainless steel manufacturing, has gained increased demand due to the global shift toward electric vehicles and renewable energy solutions.
Chris Showalter, the Chief Executive Officer of Life Zone Metals, which oversees Tembo Nickel Corporation Ltd, reiterated the company’s commitment to executing the project.
He highlighted that the initiative includes nickel mining operations in Ngara District, Kagera Region, and the construction of a refining facility in Kahama District, Shinyanga Region.
"We are dedicated to ensuring the successful implementation of this project, which involves both mining and local processing of nickel. This will not only create jobs but also contribute significantly to Tanzania's economic growth by adding value to the extracted minerals before export," said Showalter.
The government has repeatedly stressed the importance of local mineral beneficiation, aligning with its policy to maximize revenue and create employment opportunities through in-country processing rather than exporting raw materials.
The Kabanga Nickel Project aligns with this vision, as it incorporates both extraction and refinement processes within Tanzania.
Industry experts believe that the project's success could position Tanzania as a key player in the global nickel market. The anticipated completion of the refinery in Kahama is expected to boost industrial activities in the region, attracting both local and international investments.
Despite the optimism surrounding the project, challenges remain, including infrastructure development, regulatory approvals, and ensuring environmental compliance. The government and Tembo Nickel Corporation Ltd are expected to work closely to address these issues and keep the project on track.
As the demand for nickel continues to rise globally, Tanzania stands to benefit significantly from the timely execution of the Kabanga Nickel Project. The government's insistence on meeting deadlines reflects its commitment to fostering a robust and competitive mining industry, ultimately contributing to national economic development.