AVZ wins interim orders against Congolese JV partner
Lucas Baird
Reporter
May 8, 2023 – 5.14pm
AVZ Minerals, the embattled lithium miner that has been suspended from trading for nearly a year, claims it won interim orders to prevent a former Congolese joint venture partner from terminating their deal or taking further legal action for now, in an ownership tussle over a lithium deposit.
The company is in an ongoing fight to control the Manono lithium deposit in the south-east of the Democratic Republic of Congo with the DRC-backed mining body Cominiere and entity Dathomir. The pair sought to terminate a deal for AVZ to buy 15 per cent of the so-called Dathcom joint venture, in favour of a large Chinese miner, Zijin, in 2021.
AVZ managing director Nigel Ferguson. YouTube
AVZ maintains it legally owns 75 per cent of Manono, although 30 per cent of that interest is disputed, and its mining licence linked to the project was cancelled by the DRC government on January 28. Zijin separately has asserted it has sound legal title to the 15 per cent stake it purchased from Cominiere.
The Australian miner disclosed the ministerial decree cancelling the license on February 6, one day after being emailed questions about the order by The Australian Financial Review.
AVZ told shareholders in mid-April that legal action had commenced in the International Chamber of Commerce regarding the transactions and, on Monday, said it had won interim orders in emergency arbitration.
The orders prevent Cominiere from “taking any action or taking any steps that would result” in the termination of the Dathcom joint venture, it said.
The orders prevent Cominiere from taking any legal action in the DRC regarding the JV, until the International Chamber of Commerce makes a final decision on the dispute. If Cominiere were to violate the orders, it would be subject to a €50,000 ($81,406) fine for each day in breach, according to AVZ’s statement.
“The broader Cominiere Arbitration Proceedings before the ICC also relates to Cominiere’s purported, but in AVZ’s view unlawful transfer of 15 per cent of its shares in Dathcom, to a third party,” AVZ said.
“Any failure by Cominiere to comply with the Emergency Arbitrator’s emergency orders, will be addressed by the arbitral tribunal in the Cominiere Arbitration Proceedings.
“The company, together with Dathcom, will continue to take all actions necessary to protect its legal rights in the Manono Project, the interests of its shareholders and other stakeholders,” AVZ said.
The lithium explorer is defending a separate arbitration case brought by Zijin, with hearings scheduled to start on July 3.
The Australian Securities Exchange last month suspended AVZ for failing to comply with its listing rules, sending the company a series of questions.
AVZ told the ASX its failure to “fully comply” with the key listing rule is partly because its confidential and legally privileged information has been reported by the Financial Review, which revealed on February 8 that it paid a Congo middleman $US1 million cash to help it secure its mining licence from the DRC government.
The company’s shares have not traded since May last year.
Mmmmm Tommy MIA, does he still work for the AFR?
Ahh 
I’ll just let myself out..
+7.5% 
