By Rhiannon Hoyle

BHP Group Ltd. will invest up to $90 million in Kabanga Nickel Ltd., which owns a nickel project in Tanzania, as the world's largest mining company by market value seeks to boost its exposure to metals needed for a low-carbon economy.

BHP has agreed to initially invest $40 million to accelerate the Kabanga Nickel project, for an 8.9% equity stake, and may commit a further $50 million if definitive documentation can be agreed and certain conditions are met, Kabanga Nickel said. BHP will also put $10 million into Lifezone Ltd., the owner of hydrometallurgical technology that will be used to build and operate a refinery in Tanzania.

Kabanga Nickel wants to produce battery-grade nickel as well as cobalt and copper at the project in northwest Tanzania that was formerly owned by Barrick Gold Corp. and Glencore PLC. BHP has the right to make further investments subject to achieving certain agreed milestones, it said.

"This investment secures access to a world class nickel sulphide resource and is aligned with BHP's strategy to capture opportunities in future-facing commodities," BHP said in an emailed statement.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 10, 2022 03:59 ET (08:59 GMT)

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