https://miningnewsmagazine.org/des-etapes-importantes-sur-le-parc...

https://miningnewsmagazine.org/des-etapes-importantes-sur-le-parcours-davz-davz-international-green-lithium-et-dathcom-mining-sa/

Summary

International Court Cases

The situation involves the sale of a 15% stake in the Dathcom Mining project's shares by Cominière, a partner representing the State, to Zijin, a subsidiary. The General Inspectorate of Finance (IGF) investigated and found irregularities, concluding that the sale violated legal provisions. The criminal liability of Cominière's management and the Ministry of the Portfolio is established, with identified irregularities including improper evaluation procedures and misappropriation of funds.

Additionally, the IGF report highlights the irrevocable and non-temporary nature of the transfer of 5% of Cominière to Dathomir, raising concerns about legality. Partners in Dathcom Mining, including Dathomir, are accused of becoming obstructive and money-oriented after the feasibility study, collaborating against AVZ. The coalition's actions include terminating contracts, dissolution of the company, and awarding permits to a new joint venture involving Zijin.

In response, AVZ, GREEN LITHIUM, and DATHCOM have jointly approached the Paris Commercial Court and the International Center for the Settlement of Investment Disputes to resolve disputes. The key question raised is whether it is in the interest of the Democratic Republic of Congo (DRC) to heavily involve a Chinese player in its mining sector, particularly in the context of global efforts towards green energy and concerns about overreliance on China.

The narrative indicates a strategic and legal approach by AVZ, emphasizing negotiations within the DRC and international legal actions. The Ministry of Industry's involvement is highlighted, with AVZ collaborating transparently, proposing development initiatives, and awaiting the outcome of the interministerial commission's assessment of AVZ's financial capacity for the project.

Overall, the summary highlights a complex situation involving legal, financial, and geopolitical aspects surrounding the Dathcom Mining project, with AVZ seeking resolution through both domestic negotiations and international legal channels.

Hydro Power Station

AVZ collaborated with the Ministry of Energy and Hydraulic Resources to address the energy challenges in the Manono area. AVZ POWER submitted an expression of interest in July 2019 for the rehabilitation of the Mpiana-Mwanga 1 and 2 hydroelectric power stations, both around 90 and 70 years old, respectively. The Ministry welcomed the expression of interest, leading to joint missions between AVZ POWER, Cominière, and the Ministry to assess the situation.

A memorandum of understanding was signed in January 2020 to conduct feasibility and environmental studies to obtain the concession. Environmental studies and certificates were submitted two years later, and a commission set up by the Ministry provided a favorable opinion after two days of work in March 2022. The Minister of Energy recommended AVZ POWER proceed to the next step of obtaining the concession, but the process faced administrative obstacles, seemingly influenced by political factors, hindering the development of the region and the country.

The narrative suggests that despite AVZ's adherence to legal and ethical standards, political and non-legal networks are being exploited by detractors, impacting the business climate and governance of the mining sector in the Democratic Republic of Congo (DRC).

Solutions & International Impact

The AVZ Party advocates for an amicable resolution to the disputes, emphasizing justice, fairness, and the rights of stakeholders, including the Manono community and shareholders. Cominière seeks the dissolution of Dathcom, while Dathomir pursues AVZ's money without concern for the joint venture's fate.

The involvement of the President of the Republic is deemed necessary to fairly and sustainably resolve the dispute, considering the impact on the country's reputation as a business-friendly and climate-conscious nation. The reference is made to past disputes involving mining companies like ''First Quantum Minerals'' and ''Vedanta Limited'' in Zambia, suggesting the need for diplomatic intervention.

Sources indicate that the United States Embassy in Kinshasa is closely monitoring the situation, advising potential American investors to await the outcome of the AVZ affair before making any planned investments related to the Dathcom Permit.

The standoff between Cominière and AVZ is seen as causing irreparable damage to the country's appeal for Western investments in the lithium sector. The reminder is given that the United States, through the Minerals Security Partnership (MSP), has a keen interest in critical minerals, including lithium, and has formed a coalition with various partner countries.

The narrative emphasizes the potential loss of nearly 2.5 years due to the interests of a few individuals and urges the DRC to diversify its partners in all sectors, avoiding overreliance on Chinese investments. The call is for the country to encourage mining companies that invest in exploration and research while discouraging those involved in the expropriation of others' studies and permits.