The project is located in north western Tanzania, south of Lake Victoria and near the Burundi border.

Kabanga’s 58 million tonne nickel resource is regarded as one of the best undeveloped greenfield nickel sulphide deposits in the world.

Due to the depth of the resource, Kabanga will be developed as an underground mine. The mine will use conventional underground mining and processing technology, exporting a nickel concentrate to international markets. The expected mine life of Kabanga, with current resources, is approximately 30 years.

Since 2005, there has been continued progress made in the development of the Kabanga Nickel Project with a significant investment to date of over US$205 million in drilling and evaluation studies. A total of 410 kilometers of diamond drilling has been completed that has expanded the size of the mineral resource. Kabanga has a total estimated Measured and Indicated Resource of 37.2 million tonnes grading 2.63% nickel and an inferred resource of 21 million tonnes grading 2.6% nickel. Contingent upon the results of the feasibility study and government infrastructure improvement projects, it is expected that the operation may be capable of producing more than 40,000 tonnes per year of nickel-in-concentrate at full production.

In 2005, Falconbridge acquired a 50% indirect interest in the Kabanga Nickel project in Tanzania from Barrick Gold, which retains the remainder. Falconbridge was acquired by Xstrata in 2006 and Xstrata Nickel is now the operator of the joint venture.

Kabanga Nickel is committed to operating in accordance with the Xstrata Standards for Sustainable Development.

Kabanga Nickel has a strong commitment to community engagement in the four wards adjacent to the project site. Kabanga has worked collaboratively with the Regional, District and Village level of governments and communities during the exploration and evaluation phases of the project. Kabanga plans to build on these excellent relationships during the next phases of the project.

The Kabanga project focuses its community development efforts on health, water, education and security.