BHP makes a comeback in Africa with a nickel venture in Tanzania.
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BHP Group (BHP.AX), (BHPB.L) has invested $40 million in a Tanzania nickel property, according to Kabanga Nickel, a UK-based private firm. This is the world’s largest miner’s first new bet in Africa in years.
BHP has not been active in Africa since the 2015 spin-off of South32, although CEO Mike Henry has expressed a desire to enter into “tougher areas.”
Kabanga hopes to begin production in 2025 and aims to produce a minimum of 40,000 tonnes of nickel, 6,000 tonnes of copper, and 3,000 tonnes of cobalt per year.
Nickel, a vital component in electric vehicle batteries, is expected to see an increase in demand.
A BHP spokeswoman said, “This investment ensures access to a world-class nickel sulphide resource and is aligned with BHP’s strategy to exploit opportunities in future-facing commodities.”