Negotiations between the government of Tanzania and Lifezone Metals to amend the Framework Agreement governing the Kabanga Nickel Project have taken longer than expected, pushing the project’s long-awaited Final Investment Decision (FID) into the first quarter of 2027 and delaying one of Africa’s largest critical minerals developments.

Lifezone Metals said discussions with senior government officials, including President Samia Suluhu Hassan, have continued as both parties seek to finalise amendments that will underpin the project’s financing and implementation.

The negotiations culminated in a high-level meeting on June 9 involving Lifezone Metals Chairman Keith Liddell, Tembo Nickel Company’s Chief Executive Officer Benedict Busunzu, Minister for Minerals Anthony Mavunde and Treasury Registrar Nehemiah Mchechu.

The company said while substantial progress has been made, the pace of negotiations has affected the overall project schedule.

“We now expect FID to take place during Q1 2027,” the company said, noting that the project remains a Tanzanian-US linked investment of national importance. It added that the timing could still move forward if negotiations conclude quickly, although further delays remain possible depending on lenders’ assessment of the amended Framework Agreement.

Despite the delayed investment decision, preparations on the ground have accelerated significantly.

Lifezone has released procurement packages worth approximately $854 million to the market, covering engineering, mining and bulk earthworks contracts. The tenders have attracted both international and Tanzanian contractors as the company positions itself for construction once financing is secured.

The company also revealed that negotiations for a strategic equity investment in the Kabanga project, led by Standard Chartered Bank, are at an advanced stage with multiple offers already received.

Meanwhile, project financing arranged by Societe Generale continues to progress, with development finance institutions and export credit agencies from Africa, Europe and North America indicating their willingness to participate.

During the first half of the year, the US Development Finance Corporation completed due diligence for political risk insurance, while lender documentation advanced ahead of the final funding structure once the Framework Agreement is concluded.

Lifezone said it ended June with a cash balance of $37.3 million, up from $20.1 million at the end of last year, after raising $25 million through an equity offering and drawing $21.7 million under its senior secured bridge financing facility to fund pre-FID activities.

Operationally, the company reported that detailed engineering, procurement and site investigations have continued uninterrupted.

Community preparations have also progressed, with 97 percent of affected households having signed compensation agreements and received payments, while the remaining funds have been placed in escrow. The project directly employed 209 workers and contractors by the end of June and has recorded more than 2.9 million hours without a lost-time injury.

Chief Executive Officer Chris Showalter said Tanzania remains central to the company’s long-term growth strategy, adding that work on the Kabanga project has continued alongside procurement activities and financing efforts. He said the company has also expanded into Burundi through the Musongati nickel project while advancing its platinum group metals recycling technology.

The Kabanga Nickel Project is regarded as one of the world’s highest-grade undeveloped nickel sulphide deposits and is expected to play a strategic role in supplying battery metals needed for electric vehicles and the global energy transition once development begins.