KoBold Metals Eyes Major Lithium Project in the DRC Amid Legal Dispute
KoBold Metals, a mining company backed by billionaires Bill Gates and Jeff Bezos, has informed the Democratic Republic of Congo’s government of its interest in developing one of the world’s largest hard rock lithium deposits.
This marks the first significant offer from a major U.S. mining company to invest in the central African nation, coinciding with early discussions on a potential minerals and security partnership between the two countries.
KoBold, which leverages artificial intelligence to explore materials vital for the energy transition, has proposed taking over a highly sought-after mining license.
It also aims to resolve a prolonged dispute involving Australia’s AVZ Minerals Ltd., China’s Zijin Mining Group Co., and the Congolese government, according to a letter reviewed by Bloomberg News.
The dispute has stalled investment in the Roche Dure resource, which has the potential to become a major lithium producer.
In a letter dated January 21, KoBold’s Chief Legal Officer, Sandy Alexander, described the deposit as a “large-scale, long-lived lithium mine” and expressed the company’s willingness to develop the asset.
The company has over 70 exploration projects worldwide and is already developing the Mingomba copper mine in neighboring Zambia.
KoBold’s offer came shortly before Congolese President Félix Tshisekedi proposed a minerals-for-security deal with the U.S. government, as Congo faces challenges containing a Rwanda-backed rebellion in its mineral-rich eastern provinces.
Zijin plans to open the DRC’s first lithium mine in early 2026, adjacent to the area KoBold is targeting. Despite lithium prices plummeting by over 80% since their 2022 peak, Chinese companies have increased production across Africa to secure raw materials for domestic refineries, anticipating future demand growth.
AVZ was on the verge of starting the Manono project when the Congolese government revoked its rights in 2023, splitting the permit and awarding a portion to Zijin.
KoBold’s proposal could help resolve multiple arbitration cases and unlock one of the world’s richest untapped lithium sources, a key material for electric vehicle batteries. AVZ, however, is still seeking to recover the entire license.
KoBold stated that for its plan to progress, AVZ would need to receive “appropriate compensation” and relinquish all its interests in the DRC. Under the proposed resolution, Zijin would retain the northern section of the deposit, while KoBold would develop the southern portion.
Additionally, KoBold requested that the Congolese government, rather than state-owned Cominiere—AVZ’s former partner—hold the minority stake in any joint venture.
The letter was addressed to Anthony Nkinzo, President Tshisekedi’s chief of staff, and copied to AVZ CEO Nigel Ferguson and an external company lawyer.
KoBold confirmed it sent the letter but declined to comment further. AVZ also declined to comment, while Nkinzo did not respond to inquiries. Meanwhile, a Zijin spokesperson stated that the company’s priority is to develop its concession and begin production.
Any acquisition by KoBold would also need to address AVZ’s existing agreement with China’s Suzhou CATH Energy Technologies, which is partly owned by the world’s largest EV battery maker and is financially supporting AVZ through the arbitration process.
Michael Bloomberg, the majority owner of Bloomberg News’ parent company, Bloomberg LP, is an investor in Gates’ Breakthrough Energy, which holds a stake in KoBold, according to the company’s website.
SOURCE:mining.com
