AVZ Minerals issues tenders worth US$300m for Manono works | DRC

Australia-based exploration company AVZ Minerals has issued tenders worth around US$300 million for pre-mining infrastructure work at its planned Manono lithium and tin project in the Democratic Republic of Congo.

 The AVZ Minerals tenders cover infrastructure work including a process plant package, development of the Kabondo Dianda intermodal staging station and for diesel storage facilities and supply, as well as work site buildings and enterprise resource systems.

 “We will have final pricings on our various tenders back in July and August and then expect to be in a position to award these contracts, pending COVID-19 travel restrictions being lifted and a financial investment decision being reached,” said Nigel Ferguson, AVZ managing director.

Aerial view of Manono

AVZ Minerals hold 60% of the Manono project, which covers 188 square kilometres in the southern DRC. It hosts lithium pegmatites with a strike length of over 13km centred on a historical tin mining operation.

The company also advised that it has obtained preliminary membership of the ITRI Tin Supply Chain Initiative (iTSCi), a responsible minerals initiative of governmental authorities, companies and civil society organisations that focuses on “3T” minerals – tin, tantalum and tungsten.

“Obtaining iTSCi preliminary membership is also a significant milestone for the company as it is viewed favourably by international financiers as part of their overall due diligence process on the Company. The Company will further invest in securing full membership over the coming months,” said Ferguson.

The iTSCi program is focused on “3T” minerals (tin, tantalum and tungsten) to practically assist upstream companies to implement OECD guidelines, thereby enabling continued access to international markets and economic and social development for miners and communities across large areas of central Africa.

AVZ’s iTSCi membership aligns its practices with OECD guidelines on 3T supply chain responsibilities and the American Dodd Frank Act 1502 for conflict mineral and metals supply chain management.

Tin and Tantalum represent beneficial future by-products of Lithium ore processing at Manono. Joining and being recognised by the iTSCi due diligence and traceability programme and its adherence to the OECD due diligence guidance for Responsible Supply Chains is a key part of AVZ’s focus on local community and Government engagement.

Tenders called for pre-mining infrastructure packages

• US$300 M of pre-mining request for tenders issued
• Contracts to be awarded once a Financial Investment Decision to mine Manono has been made

AVZ Minerals Limited is further advancing its plans to develop the Manono Lithium and Tin Project (“Manono Project”) in the Democratic Republic of Congo by advertising tenders for a raft of ‘pre-mining’ infrastructure packages.

The tenders – which will be awarded once AVZ makes a Final Investment Decision to mine the Manono Project – are estimated to be collectively worth about US$300 million.

The request for tenders includes:

• Process plants EPC package
• Kabondo Dianda intermodal staging station
• Diesel storage facilities and supply package
• Site buildings
• Enterprise resource systems

Discussions with the DRC Government about the Special Economic Zone (“SEZ”) and with potential off take partners for lithium, tin and tantalum products are also progressing well.

AVZ’s Managing Director, Mr Nigel Ferguson, said: “We will have final pricings on our various tenders back in July and August and then expect to be in a position to award these contracts, pending COVID-19 travel restrictions being lifted and a financial investment decision being reached.”

Manono Highlights:

• AVZ holds 60% of the Manono Project with rights to secure additional interests
• Project covers 188km2 in southern Democratic Republic of Congo (DRC)
• Hosts lithium pegmatites with a strike length of 13km+ centred on an historical Tin mining operation
• Outstanding results received from AVZ’s initial drilling program at Manono in 2017, including 235m @ 1.66% Li2O, 202.8m @ 1.57% Li2O and 250.9m @ 1.48% Li2O.
• Roche Dure Mineral Resource of 400 million tonnes grading 1.65% Li2O, 715ppm Sn, 34ppm Ta is world-class in scale and grade

The Manono Project is owned by AVZ (60%), La Congolaise d’Exploitation Minière SA (30%) (Cominiere, a State-owned enterprise) and Dathomir Mining Resources SARL (10%) (Dathomir, a privately owned company). AVZ is responsible for funding expenditure to completion of a feasibility study and a decision to mine.

Tenure, location and infrastructure

The Manono Project comprises PR13359, which covers 188km2. The Manono Project is located 500km due north of Lubumbashi in the south of the Democratic Republic of Congo (DRC) in central Africa. The project area can be accessed from Lubumbashi by a 1.5 hour flight or by road.The Manono Project is located 500km due north of Lubumbashi in the south of the Democratic Republic of Congo (DRC) in central Africa. The project area can be accessed from Lubumbashi by a 1.5 hour flight or by road.

Infrastructure in Manono and the surrounding areas is limited. Power is currently generated at the Manono township using diesel generators and a recently commissioned solar power system. Dathomir has agreed to facilitate the rehabilitation of Piana Mwanga hydroelectric power station and the road from Lubumbashi to Manono. The road is subject to a US$285m upgrade presently being completed.

There is an abundance of good water supply for both local consumption and any potential mining operation at Manono. Other consumables are bought locally and supplemented by goods brought in from Lubumbashi and Kalemie to the North.