【SMM Nickel Market】August 19, 2025 – Johannesburg – Global defence spending is expected to boost demand for nickel as stainless and specialty steels are required for armaments such as ships, armour, and gun barrels. Lifezone Metals founder and chair Keith Liddell told Mining Weekly that this demand inflection has yet to be priced in but could be “bigger than anyone’s thinking.”

Lifezone has recently taken full control of the Kabanga Nickel Project in Tanzania (84% Tembo Nickel, 16% Tanzanian government). The feasibility study outlines 52 Mt of ore with over 100 Mt contained nickel reserves, plus cobalt and copper. Planned steady-state output is 60,000 t/y nickel, making Kabanga one of the world’s largest underground nickel operations.

Project metrics include a post-tax NPV of $1.58 billion (IRR 23%) at $8/lb nickel, with upside to $2.37 billion should an on-site hydromet refinery be added within five years. Mine life is projected to extend beyond 25 years.

The project is expected to generate over 1,000 permanent jobs and $3.6 billion in royalties, taxes, and dividends for Tanzania. Financing advisers Standard Chartered and Societe Generale are working on short-term bridge and long-term project finance, with final investment decision targeted for mid-2026.