Zijin Mining sues the $1.5 million agreement signed between AVZ and Marius Mihigo
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Chinese miner Zijin Mining has ratcheted up the pressure on AVZ Minerals by claiming the latter's US$1 million ($1.5 million) cash payment to Congolese middleman Marius Mihigo is unacceptable and contrary to the rules of the mining framework of the Democratic Republic of the Congo.
The rant fuels a sprawling standoff between Chinese, Australian and Congolese stakeholders over the ownership rights of the world's potentially most valuable untapped lithium project in Manono, southeastern Democratic Republic of Congo. .
"The agreement to pay such fees to intermediary Mr. Mihigo remains shrouded in secrecy and is of serious concern to Zijin Mining," said Chen Chen, Zijin's attorney.
“The DRC has a comprehensive legal framework for mining, which does not require additional fees or lobbying by agents to obtain a mining license.
This behavior is unacceptable and contrary to the philosophy of Zijin Mining,” he added. 
The lawyer said an International Chamber of Commerce arbitration hearing scheduled in Paris between his legal team and AVZ on April 23 has been postponed for unspecified reasons.
Meanwhile, the Australian Securities Exchange has suspended AVZ for failing to comply with its listing rules, after the former S&P/ASX 200 member said it was unable to disclose full information to the market. .
The company also said it did not disclose Manono's ownership disputes in 2021 because they were not material to its business.
Towards an open conflict?
Since the Australian Financial Review reported that Mr Mihigo had accepted a US$1 million cash payment from AVZ, the consultant has denied any unacceptable conduct and claimed in the Financial Times of London, French public broadcaster France 24 and DRC media that Zijin was behind an "orchestrated disinformation campaign" aimed at defaming him and AVZ.
It is recalled that Mihigo publicly complained about the release of AVZ's plan to pay him an additional success bonus of US$3 million and US$2 million in stock, for a total of US$5 million. , if the mining license was granted.
On June 2, AVZ's board of directors agreed to hire law firm DLA Piper to conduct a review of its plan to offer the $5 million success bonus.
DLA Piper later advised against agreeing to pay the success bonus, which was dropped.
At the TCC hearing later this year, AVZ will seek to have Zijin's claim for a 15% ownership interest in Manono dismissed, on the grounds that the court lacks jurisdiction.
Zijin says it bought a 15% stake in Manono in November 2021 for US$33.4 million from Congolese state-backed mining body Cominiere.
However, AVZ has repeatedly denied this claim, calling it "misleading" and not backed by any legal authority.
The Perth-based mining company says it still owns 75% of Manono, with the transfer of 15% breaching the joint venture agreement with seller Cominiere.
mediacongo
Let's remember their track record.
Here are some examples of the negative impact the company has had:
Toxic Spills: In 2010, a tailings dam at Zijin's copper mine in Fujian province collapsed, causing 2,000 tons of toxic waste to spill into a nearby river.
The incident resulted in severe environmental damage and widespread protests from local residents.
Human Rights Violations:
In 2015, Zijin Mining was accused of violating the rights of workers at its copper mine in Tibet.
According to a report by Human Rights Watch, workers were subjected to forced labor, long working hours, and dangerous working conditions.
Illegal Mining: In 2016, Zijin was found to be operating an illegal gold mine in Indonesia.
The company was fined $5.2 million and ordered to cease operations at the mine.
Wildlife Destruction: In 2018, Zijin was accused of causing significant damage to a protected wetland area in Papua New Guinea.
The company had been granted a permit to conduct exploration activities in the area, but local residents and environmental groups claimed that the company had caused significant damage to the ecosystem.
Controversial Investments: Zijin has also faced criticism for its investments in controversial projects, such as the Porgera gold mine in Papua New Guinea, which has been accused of human rights abuses and environmental destruction.
*Thanks to Kenton on the Crapper for that
Food for thought
Cheers
Frank
