Western company to contest Chinese rival for African resources

Australian miner AVZ Minerals is heading to international arbitration over rights to one of the world’s largest hard-rock lithium deposits in the Democratic Republic of the Congo (DRC), the company announced on its website on Monday.

AVZ initially held the rights to develop the lithium-rich area in the southeastern DRC town of Manono since 2017, when it formed a joint venture between its unit, Dathcom Mining SA, and local state-owned miner La Congolaise d’Exploitation Miniere (Cominiere). However, AVZ’s permit was revoked by the Congolese Ministry of Mines in February this year on grounds that the company had not developed the site fast enough.

Last week, China’s top gold and copper miner, Zijin Mining Group, announced its own joint venture with Cominiere to develop part of the site. The company said the Congolese authorities granted it rights over the northeast tenement of the Manono mine, with Zijin’s Jinxiang Lithium unit holding 61% of the project and Cominiere holding the rest.

Australia’s AVZ argues that it owns the entire site, including the area covered by the new permit.

“The Company, via its subsidiaries, has resolved to file an emergency arbitration application… seeking injunctive relief against Cominiere to enjoin the state owned company from conducting, directly or indirectly, any transaction regarding [the Manono mine],” AVZ said in a statement. The company expects its application, which it plans to file in the International Criminal Court, to pause the transaction of the development rights to Zijin.

Zijin last week said it will defend its right to advance the lithium project.

AVZ already has pending legal proceedings against both Cominiere and another unit of Zijin, all revolving around the Manono site.

Africa is rapidly becoming a battleground among global powers competing in clean energy solutions. China has become an active player in the continent’s resource market, with existing and planned investments ranging from copper to cobalt, lithium, and nickel, metals vital for renewable power and electric cars production.

However, other countries have been pursuing similar interests on the continent, including the US. Earlier this month, reports emerged that Washington is seeking to block Beijing’s bid in the planned sale of mining group Chemaf Resources, which operates copper and cobalt mines in the DRC.

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