Fresh article from Germany.
Marco Schnepf ‧ 18.06.2023, 17:00 ‧ Aktualisiert am: 18.06.2023, 17:00
AVZ Minerals share: The next stage of escalation!
AVZ Minerals has resorted to an international arbitration procedure over the dispute in the Congo.
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At a glance:
- With its involvement in DathcomAVZ MineralsIt is a huge lithium reserve in the Democratic Republic of Congo.
- But apparently the African country's government has not adhered to its own mining laws.
- AVZ Minerals now wants to put pressure on the Congo through an international arbitration procedure.
AVZ Minerals seeks arbitration: As the Australian mining company announced on Friday, Two subsidiaries, together with Dathcom Mining SA, have filed an application for international arbitration.
Accordingly, AVZ Minerals and Dathcom accuse the Government of the Democratic Republic of Congo (DRC) of serious omissions, This would have caused financial disadvantages to the companies.
AVZ Minerals hopes for arbitration
The arbitration proceedings are to be held in Washington, D.C. (USA). The plaintiffs invoke the so-called ICSID Convention, which states, Disputes between states and nationals of other states can be settled before the International Centre for Settlement of Investment Disputes (ICSID) in the US capital.
DISPLAY
Should investors sell immediately? Or is it worthwhile to join AVZ Minerals?
AVZ Minerals and Dathcom hope to that the arbitral tribunal make concessions to you and oblige the DRC to: The applicants accuse the Government of the Democratic Republic of the Congo of The mining laws of the African country have not been fully complied with.
Project Manono: Failure of the DRC government?
For example, AVZ Minerals and Dathcom, that the government made mistakes in handling the research permit “PR 13359”. Without these mistakes, the government and authorities would have had to grant an operating permit to Dathcom. As a result, the “Manono” project would have been significantly negatively affected, This in turn has affected Dathcom's assets.
It remains to be seen how the arbitration tribunal in Washington, D.C. will decide.
DISPLAY
Save free PDF report to AVZ Minerals:Download here for free
Lithium treasure: Chinese apparently interested
For classification: Dathcom is the official owner of the lithium project “Manono” in the Democratic Republic of the Congo. AVZ Minerals, in turn, has a 75 percent stake in Dathcom. The remaining 25 percent One percent of the shares are owned by a Congolese state-owned company, La Congolaise D’Exploitation Minerie SA.
The Manono mine had been exploited in the past mainly because of its high tin content. Recently, however, there had also been extremely promising lithium deposits there, which AVZ Minerals intends to gain access to through its stake in Dathcom. When lithium mining will pick up in the light of the dispute with the Congolese government, remained open at first.
More recently, however, a possible involvement of Chinese actors in the lucrative lithium project had caused anger at AVZ Minerals.