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ECONOMY
AVZ goes to arbitration in the USA against DR Congo for blocking Manono's lithium license
June 10, 2023
Kiki Kienge
By Kiki Kienge
To ask the question of why the blocking of DATHCOM's operating permit 13359 by the Congolese government, expecting a clear rest, is the hope of being able to touch the horizon one day.
Manono's lithium has caused a lot of ink to flow in the national and international media, a media and political roller coaster, which has always given us thrills.
In short, the Congolese government officially embarked on the adventure of exploiting this mineral, which is no longer a mineral of the future, but a wealth of the present, in 2013 with the creation of MANOMIN a joint venture between the Congolese State and MMCS, a group in the right of Mauritius, whose true names owners remain a mystery.
After the cancellation of MANOMIN due to the financial incapacity and expertise of MMCS, the DATHCOM joint venture was created in 2016 between the Congolese State by COMINIERE and DATHOMIR belonging to the Chinese, Simon Cong with 70% for the Chinese and 30% for the DRC.
Unable to raise funds for the development of the lithium project as was the case with MMCS, DATHOMIR sold 60% of its shares in DATHCOM to the Australians of the AVZ MINERALS group in 2017.
AVZ MINERALS, unlike the first two, was able to bring in funds and carry out the feasibility study of Manono's lithium so that it is certified as one of the richest deposits in the world.
According to the agreement with the Congolese State, it changes the 13359 exploration permit into a 13359 operating permit to allow DATHCOM to exploit lithium, but here after the late and suspicious interest of the Chinese group ZIJIN on the Manono lithium project trying to illegally acquire (according to the IGF) 15% of the shares of COMINIERE, the Congolese Government through the Minister of MINES, Antoinette Nsamba Kalambayi, cancels DATCOM's operating permit because of COMINIERE's accusations against AVZ MINERAL.
Namely that following a series of financial maneuvers, COMINIERE which owned 25% of the shares of DATHCOM, all sold to remain with only 5% and in duty to hand over after 10% to the Congolese State, so remains in negative of -5%.
Following the refusal of the Congolese government to resolve the situation and sit down at the table with DATHCOM's partners to find a solution, AVZ MINERALS according to the joint venture agreements, on June 08 took the decision to resort to ICSID (International Centre for Settlement of Investment Disputes) arbitration for non-compliance with the Mining Code of DR Congo.
"ICSID is an international arbitration institution established in 1966 for the settlement of legal disputes and conciliation between international investors and states. ICSID is part of and financed by the World Bank Group, headquartered in Washington, D.C., United States. It is an autonomous specialized multilateral institution aimed at encouraging international investment flows and mitigating non-commercial risks through a treaty drafted by the Executive Directors of the International Bank for Reconstruction and Development and signed by member countries," of which Congo is a member.
MINERALS LIMITED
The main objective of the ICSID Request for Arbitration is to seek various remedies for the failure of the DRC and its administrative services to comply with obligations under the DRC Mining Code, in particular in the implementation of the various measures that should have led to the issuance of an operating permit to Dathcom under the Research Permit "PR 13359", for the development of the Manono Project.
The Plaintiffs argue that the direct consequence of this breach, which is not an isolated act, is the blocking of the development of the Manono Project.
As a result, the impact on Dathcom's principal asset and more generally, on the Applicants and the Company's investment, is severe.
ICSID COMPLIANCE
Case Details
AVZ International Pty Ltd., Dathcom Mining SA and Green Lithium Holdings Pte Ltd. v. Democratic Republic of Congo (ICSID Case No ARB/23/20)
Subject matter of the dispute: Mining concession
Economic sector: Oil, gas and mining
Instrument(s) invoked: Other
Applicable Rules: ICSID Convention – Arbitration Rules (a) Initial proceedings
Applicant(s)/Nationality(ies): Green Lithium Holdings Pte Ltd. (Singaporean), AVZ International Pty Ltd. (Australian), Dathcom Mining SA (Congolese (DR)
Respondent(s): Democratic Republic of the Congo (Congolese (DR))
Registration date: June 8, 2023
Party Representatives Applicant(s): DLA Piper, Paris, France and Madrid, Spain
Respondent(s): President of the Republic, Kinshasa, Democratic Republic of the Congo
Prime Minister, Kinshasa, Democratic Republic of Congo, Ministry of Mines, Kinshasa, Democratic Republic of Congo
Procedure Status: Pending
Last development: 8 June 2023 – The Secretary-General registers a request for the institution of an arbitration proceeding.
