DRC
Conflict escalates between miners AVZ and Manono Lithium in Tanganyika
Published on 20.06.2024 at 04:40 GMT Reading time 2 minutes
In addition to the arbitration it has launched before the International Chamber of Commerce (ICC) in Paris, Australian mining firm AVZ Minerals has to contend with an increasingly hostile situation on the ground in Manono in Tanganyika Province. The group is at loggerheads with Manono Lithium, the joint venture between state-owned Cominière and the Chinese giant Zijin Mining Group's Congolese subsidiary. The two parties are prospecting for lithium in the same area and have locked horns over the construction of a road.
AVZ claims Manono Lithium began building the road in order to gain easier access to its own concession. The Australian company opposed this encroachment and launched multiple legal proceedings last year, including the ICC arbitration in Paris, to recover its operating permit. The permit was withdrawn in January 2023 by a decree issued by Mines Minister Antoinette N'Samba Kalambayi, who referred at the time to a dispute between shareholders. The dispute began after the break-down in AVZ's partnership with Cominière, which gradually drew closer to the Chinese group, Zijin (AI, 13/12/22).
Manono Lithium may well have designs on AVZ's concession, but it is also facing a number of difficulties. Last May, the deputy governor of Tanganyika Province, Ferdinand Massamba Wa Massamba, suspended the joint venture's activities until further notice. The authorities accused it of failing to submit an environmental impact study, a prerequisite for obtaining a mining permit. But the province's decision did not stop Manono Lithium from moving up a gear. As well as building the road, it is currently constructing a hydroelectric dam on the Lukushi River.