PREVIEW
Orion CMC's pursuit of Lifezone's project in Tanzania underscores Washington's determination to break China's hold on battery-grade nickel — even as the deal timeline slips into 2027
Orion Critical Mineral Consortium, backed by the US International Development Finance Corporation and Abu Dhabi's Lunate Holding, is negotiating an investment of US$500 million-$600m in Tanzania's Kabanga nickel deposit, according to people familiar with the talks. Standard Chartered ran the competitive process that led Lifezone Metals to name Orion its preferred partner, chief executive Chris Showalter told analysts this month.
Orion would be expected to contribute between $500m and $600m, accounting for the bulk of the total $942m estimated cost of building the mine.
Launched last year, Orion’s main source of financial support is the US government’s International Development Finance Corporation, and it has been clear about who it is targeting. In July, Orion CMC’s chief executive, Ben Black, said that the extra $940m would help ‘support Orion CMC's rapidly expanding pipeline of mining and minerals opportunities to help address China's strategic chokehold.’
A key ingredient in stainless steel and in the batteries that power electric vehicles, demand for nickel is rising quickly and China currently has a dominant position in its supply. Around 60% of the world's nickel comes from Indonesia, where Chinese firms are the main investors.
In neighbouring Kenya, US firms are the leading candidates to secure the Mrima Hill concession close to Mombasa that is estimated to have clsoe to 50m tonnes in reserves of rare earth elements (AC Vol 67 No 16, Trump-linked consortium edges forward in race for Mrima’s $62bn mineral prize).
Orion is a key component of a broader push by Washington to increase access to critical minerals and encourage domestic processing. In early February, the Trump administration set out plans to form a preferential trade zone for critical minerals, signing partnership agreements with Congo-Kinshasa, Guinea and Morocco (AC Vol 67 No 4, Trump picks top Africa official as policies home in on resources and security & Vol 67 No 7, The Americans are buying).
in February Orion CMC agreed to buy a 40% stake in Glencore’s two Congolese operations, Mutanda Mining and the Kamoto Copper Company (AC Vol 67 No 11, Africa’s minerals drive a global scramble).
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