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BHP Exits Tanzanian Nickel Project with $83M Sale, Analysts Forecast Downside from Current Levels
ByAinvest
Monday, Jul 21, 2025 6:21 pm ET1min read
BHP Group Ltd (BHP) has divested its 17% stake in the Kabanga nickel project in Tanzania for $83M, aligning with its strategic focus on the nickel market. Analysts forecast an average price target of $50.36, indicating a potential downside of 5.97% from the current price of $53.56. BHP's GF Value estimate suggests a slight potential downside, indicating the stock may be priced near its fair value.
BHP Group Ltd (BHP) has sold its 17% stake in the Kabanga Nickel Project in Tanzania to Lifezone Metals for up to $83 million. This move aligns with BHP's strategic focus on the nickel market and follows a surge in production from Indonesia over the past few years [1].The Kabanga Nickel Project, located in the northwestern part of Tanzania, is expected to produce around 50,000 metric tons of nickel per year once fully ramped up, a process anticipated to take about six years. The project's development costs are estimated at $2.49 billion, with a finalization date set for the end of 2026 [1].
Lifezone Metals, a company listed on the NYSE, now owns 100% of Kabanga Nickel Limited (KNL), the majority owner of the project. KNL holds an 84% interest in Tembo Nickel Corporation Limited (TNCL), the Tanzanian operating firm for the project. The remaining 16% is held by the Tanzanian government [2].
The transaction involves a fixed cash payment of $10 million and a deferred cash payment indexed to Lifezone's share price performance. The total consideration cap is $83 million, or reduced to $75 million if a Resettlement Action Plan (RAP) Trigger Event occurs [2].
Analysts have forecast an average price target of $50.36 for BHP, indicating a potential downside of 5.97% from the current price of $53.56. BHP's GF Value estimate suggests a slight potential downside, indicating the stock may be priced near its fair value [1].
References:
[1] https://energynews.oedigital.com/mineral-resources/2025/07/20/bhp-exits-25-billion-tanzania-nickel-project-partner-lifezone-says
[2] https://www.morningstar.com/news/business-wire/20250718862553/lifezone-metals-consolidates-control-of-the-world-class-kabanga-nickel-copper-cobalt-sulfide-project
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