AVZ wins embassy support in DRC mine stoush
Tom RichardsonMarkets reporter and commentator
Apr 14, 2023 – 3.26pm
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Embattled lithium explorer AVZ Minerals said it met with Australia’s ambassador designate to the Democratic Republic of Congo, and received a commitment to work with the miner in its efforts to obtain a mining license in the resource rich African nation.
The request for government support comes as the Albanese government signalled its critical minerals strategy
will push back against Chinese investors’ dominance of clean energy supply chains.
AVZ said it met Minoli Perera, Australia’s ambassador to Zimbabwe at an unspecified location. Ms Perera has accreditation to the DRC where Australia has no official embassy in a country that has significant political instability and security risks.
The Perth-headquartered miner is locked in a battle with Chinese and DRC stakeholders for control of potentially the world’s most valuable untapped lithium deposit named Manono, after its mining license was cancelled by the DRC government in January.
If AVZ cannot obtain a new mining license its shareholder base of institutional Chinese investors and Australian retail investors face a potential $2.7 billion paper wealth wipeout.
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AVZAVZ Minerals
$0.780 -7.14%
1 year1 day
Apr 22May 220.7501.0501.350
Updated: Apr 14, 2023 – 3.27pm. Data is 20 mins delayed.
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FMGFortescue Metals Group
$22.275 0.61%
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AVZ said “no comment” to questions around claims from a DRC source that its chief executive Nigel Ferguson is currently in the country seeking to meet with its minister for regional planning Guy Loando. The minister is a senior member of the government of President Felix Tshisekedi.
The source claimed Minister Loando may arrange a meeting for Mr Ferguson with President Tshisekedi, who is regarded as the ultimate power broker to resolve the dispute between warring stakeholders.
AFR Weekend is unable to verify the claims Mr Ferguson is in the DRC.
Sharemarket limbo
On Wednesday in an announcement to the sharemarket, AVZ said it couldn’t comply with listing rules around disclosure partly because the DRC is a “challenging” mining jurisdiction and the intention of its government is too unclear to warrant disclosure.
A potential International Chamber of Commerce dispute between AVZ and rival Chinese miner scheduled for April 23 has also been postponed for unspecified reasons, fuelling speculation some movement is expected to resolve the deal.
AVZ claims it has valid legal title to 75 per cent of the project and has regularly rubbished claims by rival stakeholders Dathomir and Zijin Mining over ownership interests totalling 30 per cent of the Manono project.
The Perth-based miner’s agent in the DRC, Marius Mihigo, again used Twitter on Thursday to accuse Zijin of underhand payments in acquiring its stake. Mr Mihigo added “Zijin will not succeed in stealing the project.” Zijin has denied the accusations.
Fortescue Metals Group has also partnered with the DRC to develop hydroelectric power at the Grand Inga Project, although news wire Africa Intelligence said on April 11 that the project has been plagued by delays.
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