DRC: lithium prices fall by almost 90%, what is the future of the Manono lithium project?
The drop in lithium carbonate futures below US$10,000 per tonne has raised concerns in the market, particularly after the metal reached an impressive US$70,000 per tonne at a point in 2022.
This decrease in value has significantly impacted the once-prominent Manono lithium project, rendering it unviable for further development.
The Australian company AVZ, responsible for the project, has faced the fallout, bearing the weight of the irreparable losses incurred by the State of the DRC and the public company Cominière.
To illustrate the severity of the situation, a comparison is drawn to a lithium mine in Zimbabwe, aiming to elucidate the gravity and unacceptable nature of the seven-year stagnation at Manono.
For instance, Huayou Cobalt, a shareholder of AVZ and owner of the CDM copper and cobalt mine in the DRC, managed to construct and commence commercial production at its Arcadia lithium project in Zimbabwe within a mere two years.
Similarly, SINOMINE, actively engaged in exploration in the DRC, successfully developed the Bikita lithium project in Zimbabwe within the same two-year span.
The project, inclusive of exploration, feasibility studies, and mine construction, has already transitioned into the production phase.
