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Dubai – Global law firm Clyde & Co advised UK mining company, Kabanga Nickel, on a binding framework agreement with the Government of Tanzania for the development of the Kabanga Nickel Project, the world's largest development – ready battery grade nickel sulphide deposit. As part of the transaction, Kabanga Nickel also acquired certain historic project assets.
Clyde & Co acted as legal adviser to Kabanga Nickel (formerly LZ Nickel Limited) on various aspects of the matter, including the key transaction documents, as well as providing strategic corporate advice on due diligence, setting up the relevant entities and regulatory approvals.
Located in the north-west of Tanzania, the multi-billion dollar Kabanga project hosts an in situ mineral resource of 58 million tonnes at 2.62% Ni, containing more than 1.52 million tonnes (3.30 billion pounds) of nickel, a key ingredient for the making of electric vehicles. Kabanga will support a mine life of at least 30 years with further exploration potential.
As part of the deal, the parties have also created a joint venture company called Tembo Nickel Corporation Limited (owned 84% by Kabanga Nickel and 16% by the Government of Tanzania) to undertake mining, processing and refining of Class 1 nickel with cobalt and copper co-products.
Michael Strain, Partner and Head of Corporate – East Africa at Clyde & Co in Dar es Salaam, comments: “This is a landmark agreement and a significant development for Tanzania – heralding a much-needed new dawn for the Tanzanian mining industry and investor confidence."
Keith Liddell, Chairman of Kabanga Nickel, said: “We are excited to start our journey to develop Kabanga into a unique, ESG compliant, responsible mine of the future. This mine will contribute significantly towards supplying critical and traceable battery metals for the transition to a low carbon world economy."
The Clyde & Co team advising on the project was led by Michael Strain, with the support of James Pius (Senior Associate - Dar es Salaam) and Amreen Ayub (Associate - Dar es Salaam).
Clyde & Co is one of the largest international law firms operating on the continent, with over 20 Partners and 130 staff based full time in Cape Town and Johannesburg in South Africa, Dar es Salaam in Tanzania and Nairobi* in Kenya. Clyde & Co offers both local and cross-border legal services with deep-rooted market knowledge based on over 20 years' experience, supporting clients operating and investing in emerging markets across Sub-Saharan Africa.
© Press Release 2021
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