A total of 1,206 households physically or economically displaced by the Kabanga Nickel Project in Ngara district have received 26.7bn/-, which is equivalent to 95 percent of the compensation payment.

According to the statement issued on Monday by Lifezone Metals Limited, the majority stake owner of the project, the initiation of compensation payments to affected households commenced on November 6th, 2023.

“As of June 30th, 2024, a total of $10.4 million was spent on compensation payments for those households that will be physically or economically displaced by the project,” the statement said.

The activity started in November 2023, with $2.2 million spent to December 31st, 2023 and $8.2 million spent from January 1st, 2024 to June 30th, 2024, resulting in 94 percent of the compensation payments completed by the end of Q2 2024. 

An additional compensation payment has been made and as of August 19th, 2024, the statement said.

“With the future construction of the Kabanga Nickel Project, within the Special Mining Licence 349 local households will be physically impacted (i.e., houses and land title impacted) and 990 will likely be economically impacted (i.e., land title impacted),” it said. 

In 2023, Lifezone says it worked proficiently to update and improve a previous 2013 Relocation-Resettlement Action plan, and the Lifezone Resettlement Action Plan was submitted to the Tanzanian Ministry of Minerals in August 2023.

By the end of 2023, Lifezone achieved key resettlement milestones, including obtaining the Tanzanian Chief Government Valuer sign-off on the compensation schedule and valuation for land acquisition and relocation.

“Our community team is actively engaged in identifying and supporting community members who have not received their payments, often related to missing documentation,” it said. 

The completion of compensation payments will give Lifezone legal surface title to the entire 4,300 hectares of the Kabanga Special Mining Licence area.

In June this year, the resettlement model houses showcase began, and five model houses have been built following discussions with affected persons. 

Households that will be physically displaced by the project are entitled to select from one of two different styles of replacement house. 

The statement noted that those who will be affected, have participated in a process of balloting for preferred resettlement sites, as well as selecting and influencing the housing materials, structures and design. 

Feedback following the initial showcase is being addressed ahead of final construction and relocation as Lifezone said will build approximately 410 new houses for resettlement at land selected in cooperation with government and local working groups.

Lifezone Metals Limited Chief Executive Officer, Chris Showalter said the company continues to progress its project, through a strategic partnership with the Government of Tanzania, which owns free carry stake of 16 percent and BHP. 

Kabanga is believed to be one of the world's largest and highest-grade undeveloped nickel sulfide deposits.

In addition, he said, Lifezone continues to advance its partnership with Glencore to recycle platinum, palladium and rhodium in the United States.

Design and engineering for the Kabanga Nickel Project’s Definitive Feasibility Study, which remains on track, is expected to be completion by the end of September.

The Project's capital and operating expenditures estimates are currently being finalized, based on an initial 1.7 million tonne per year Phase 1, plus additional 1.7 million tonne per year Phase 2 expansion, for a combined 3.4 million tonne per year underground mining operation, concentrator and Hydromet refinery.

The Kabanga Nickel Project is expected to be a fully integrated mine-to-metal operation that will enable a fully auditable supply chain with production of refined, LME-grade nickel, copper and cobalt metals in Tanzania.

Production of first nickel, copper and cobalt metal cathode samples from Kabanga source material via the semi-continuous Hydromet pilot program at Lifezone's Simulus Labs in Perth, Australia.

Pilot work and Feasibility Study for the Phase 1 partnership with Glencore to recycle platinum, palladium and rhodium from spent automotive catalytic converters in the United States is progressing well with planned completion in Q4 2024.

During the first half of this year, the company’s basic and diluted loss per share amounted to $0.14 compared to basic and diluted loss per share of $0.18 in H1 2023.

 Showalter stated: "Completing the design and engineering phase of the Definitive Feasibility Study for the Kabanga Nickel Project marks a pivotal milestone, bringing us another step closer to our goal of establishing a fully integrated mine-to-metal operation in Tanzania. We are dedicated to continuing our collaboration with BHP and the Government of Tanzania to drive sustainable development and prosperity."