Zijin’s Dispute with AVZ Over Manono Project Stake Heads to DRC Court

A legal dispute between a subsidiary of Zijin Mining, a Chinese mining giant, and Australia’s AVZ Minerals over a stake in the Manono lithium-and-tin project in the Democratic Republic of Congo (DRC) will now be adjudicated by a DRC court, following a decision by the International Chamber of Commerce (ICC) Court of Arbitration.

Zijin Mining announced today that the ICC has ruled it lacks jurisdiction to hear the case between Jincheng Mining and AVZ, based in Fujian province.

The dispute arose after AVZ failed to recognize Zijin Mining’s acquisition of a stake in Dathcom Mining, a joint venture controlled by AVZ and granted mining rights to the Manono project by the DRC government.

While Zijin Mining expressed confidence in seeking a fair resolution through the DRC legal system, AVZ disputed the validity of the stake acquired by Zijin Mining. The disagreement prompted Jincheng Mining to initiate legal proceedings against AVZ with the ICC in May 2022.

The Manono project, known for its vast lithium-rich LCT (lithium, cesium, tantalum) pegmatite deposits, holds significant potential in the global lithium market.

Dathcom, founded in 2016, has AVZ as the majority shareholder with a 60 percent stake, followed by DRC government-owned Cominière at 25 percent, and Dathomir Mining Resources at 15 percent.

Zijin Mining began negotiations with Cominière in June 2021 to acquire a 15 percent stake in Dathcom, which was approved by the local government in November 2021. However, AVZ disputed Zijin Mining’s status as a shareholder, leading to the ICC case.

As the legal battle shifts to the DRC court system, the outcome remains uncertain, with both parties aiming to protect their respective interests in the valuable Manono project.

SOURCE:yicaiglobal.com