• BHP sells its 17% stake in Kabanga to Lifezone Metals for up to $83 million.

• Nickel prices have plunged from $48,000 in 2022 to about $15,000 per tonne today.

• BHP remains active in Africa, investing $25 million in Botswana copper projects this year.

Australian mining giant BHP agreed to sell its 17% stake in Tanzania’s Kabanga nickel project to Lifezone Metals, the company announced Friday. The deal could bring BHP up to $83 million, paid in instalments.

BHP initially bought into the project in 2022 with a $40 million investment, gaining a 17% stake. Lifezone Metals owns 67%, and the Tanzanian government holds 16%. After the sale, Lifezone will control 84% once all payments clear.

The company has not publicly given reasons for exiting Kabanga. Market conditions likely influenced the decision, as nickel prices collapsed from an annual high of $48,000 per tonne in 2022 to about $15,000 now, a 68% drop amid oversupply.

This price slump led BHP to suspend operations at its Nickel West and West Musgrave projects in Australia in 2024. However, the sale does not signal a retreat from Africa’s mining sector. In March 2025, BHP announced a $25 million investment in the Kitlanya East and West copper projects in Botswana alongside partner Cobre.

This article was initially published in French by Aurel Sèdjro Houenou

Edited in English by Ange Jason Quenum