Australian company AVZ Minerals has indicated that it is ready to enter into an agreement with US company KoBold Metals, backed by Jeff Bezos and Bill Gates, for the development of the vast Manono lithium deposit, provided it receives a “commercially acceptable” offer.
In July, KoBold announced an exploration partnership with the DRC, confirming its interest in the southern part of the site. This area is the subject of arbitration proceedings initiated by AVZ, which claims that Kinshasa illegally cancelled its licence in 2023. The Congolese government then split the permit, awarding the northern part to China’s Zijin Mining, which is already building its own mine.
“AVZ remains committed to reaching an agreement to sell the assets to an American company, but only on commercially acceptable terms. Such an offer has not yet been presented to us,” said CEO Nigel Ferguson.
The case is part of the strategic rapprochement between Washington and Kinshasa, as the United States seeks to reduce global dependence on China for the supply of critical minerals, including lithium, which is essential for electric vehicle batteries, according to the specialist media outlet Bloomberg.
KoBold’s conditions
KoBold has informed the Congolese authorities that legal disputes must be resolved and that AVZ must receive ‘appropriate’ compensation before any progress can be made on the project. In the background, a separate agreement links AVZ to China’s Suzhou CATH Energy Technologies, which has promised to invest USD 259 million if the company obtains a full operating licence, in exchange for access to lithium.
“The Manono project is clearly at the heart of a geopolitical competition between major powers,” says Mr Ferguson, who believes that the rapprochement between Washington and Kinshasa ‘opens a window of opportunity for a positive outcome’.
M&B with Bloomberg
Lithium: AVZ Minerals open to a deal with KoBold Metals on the Manono deposit
