BHP Group (BHP.AX), (BHPB.L) has invested $40 million in a Tanzania nickel project, UK-based private company Kabanga Nickel said on Monday, the first new bet by the world’s biggest miner in Africa in years.
BHP has not been active in Africa since it spun off South32 in 2015, but CEO Mike Henry recently signalled a new willingness to venture into “tougher jurisdictions”.
Kabanga, which expects to start producing in 2025, aims for minimum annual output of 40,000 tonnes of nickel, 6,000 tonnes of copper and 3,000 tonnes of cobalt.
Demand for nickel, a key component in electric vehicle batteries is projected to rise.
“This investment secures access to a world class nickel sulphide resource and is aligned with BHP’s strategy to capture opportunities in future-facing commodities,” a BHP spokesperson said.
