AVZ Minerals will resume legal proceedings against the Democratic Republic of Congo (DRC) over mining rights to the Manono lithium deposit after settlement talks failed to resolve the dispute.
Reuters reports that the unresolved conflict could complicate California-based KoBold Metals' plans to acquire AVZ Minerals' stake in one of the world's largest hard rock lithium deposits.
AVZ originally held the permit to develop the Manono project, but the DRC’s mines ministry revoked it in 2023, citing insufficient progress.
The rights were later awarded to a subsidiary of China’s Zijin Mining, prompting AVZ to pursue arbitration through the International Court of Arbitration (ICC) and the International Centre for Settlement of Investment Disputes (ICSID).
The U.S. government had urged a negotiated resolution, leading AVZ to pause ICSID proceedings in late May temporarily.
However, the company said the DRC did not engage in discussions during the suspension period, which has now lapsed, forcing AVZ to resume arbitration.
AVZ’s shares were suspended in May 2022 and later delisted due to the prolonged dispute.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
