Latest Developments in the Manono Lithium Evolution
Contrary to AVZ Minerals’ claims in their announcement on October 9, 2023, it appears that there has been limited progress in the Memorandum of Understanding (MOU) between the Congolese Government and the Australian company. It seems that the Congolese side is growing frustrated with AVZ Minerals’ CEO, Mr. Nigel Ferguson, and his board for their handling of the “Manono Lithium” project.
AVZ Minerals has been at the helm of this project for several years, and one would expect them to have anticipated and resolved the conflicts that are currently hindering its progress.
However, they have not been able to reach agreements with the Democratic Republic of Congo’s government and other joint venture partners under the framework of DATHCOM.
It has been six years since AVZ acquired approximately 60% of DATHCOM Mining, a project aimed at mobilizing funds for feasibility studies before the lithium deposit’s exploitation stage.
Despite their significant involvement, work on the ground ceased, and the Research Permit PR 13359 was never transformed into an Exploitation Permit. Additionally, the joint venture contract was terminated, and Research Permit PR 13359 was deregistered in DATHCOM’s name and returned to COMINIERE SA.
The sequence of events suggests that the Congolese Government is no longer willing to negotiate with Mr. Nigel Ferguson. If the AVZ Minerals management changes, COMINIERE and DATHOMIR are open to negotiations with the new board to resolve differences.
Mr. Fergusson has taken an aggressive litigation approach against all joint venture partners, which the local partners view as a lack of respect towards them, the State represented by COMINIERE, and the Congolese people.
Despite a new Ministerial Order on January 28, 2023, which aimed to harmonize cooperation between DATHCOM shareholders as a prerequisite for advancing the Manono project, disputes continue to impede progress. AVZ Minerals, despite promises, has not withdrawn disputes before the courts and tribunals.
To resolve these disputes and move forward, it is imperative to create the conditions for amicable and equitable resolutions. The partners are disappointed with Mr. Fergusson’s aggressive stance, preventing the project’s development.
Representatives of “Make Manono Great Again” (MMGA), Mr. Michael Carrick, Mr. Peter Huljich, and Mr. Ty Luddbrook, recently held high-level meetings in Kinshasa, including with government officials. The Congolese Government supports the idea of negotiations for the benefit of all parties and the Congolese people.
DATHCOM, a subsidiary of AVZ Minerals, and its directors have been involved in extensive legal battles in the DRC, often with unfavorable outcomes for AVZ. However, these national cases have not been adequately disclosed.
There is now optimism that the Government of the DRC can work with the new AVZ board, expected to be appointed at the General Assembly in November.
The new administrators are anticipated to address unresolved questions about the Manono project, aiming to move it forward instead of getting entangled in endless litigation.
