AUSTRALIAN ARTICLE
Aussie miner AVZ in sale agreement with Gates, Bezos-backed KoBold
Brad Thompson
.
42 minutes ago
Perth-based AVZ Minerals has defied the odds to reach a geopolitically significant deal to sell a giant lithium project in Africa to a US company backed by Bill Gates and Jeff Bezos.
The deal between AVZ and KoBold Metals over the Manono project in the Democratic Republic of Congo shapes as the linchpin in a critical mineral pact between the Trump administration and the strife-torn nation.
Both the US government and DRC president Felix Tshisekedi are understood to support the deal between AVZ and KoBold thrashed out in Washington.
The sale price remains unclear but the deal is set to trigger an initial investment of more than $US1bn ($1.55bn) in Manono from KoBold, and is a rebuff to Chinese interests in Africa.
AVZ’s market capitalisation got to $4.6bn in 2022 on high hopes for Manono but fell from grace as it lost control of the massive hard rock deposit that has been likened to the world leading Greenbushes lithium mine in Western Australia.
In a joint statement, AVZ and KoBold said they recognised that “rapid, ethical development of the Manono lithium deposit should play a role in supporting peace and security”.
Their deal was struck against a backdrop of the DRC seeking US protection from Rwanda-backed M23 rebels that have caused havoc and overrun parts of the resources-rich country.
The statement, signed by AVZ chief executive Nigel Ferguson and his KoBold counterpart Kurt House, said they had advanced the peace process by reaching consensus on a commercial framework to enable the rapid development of Manono.
“This framework entails AVZ selling its commercial interest in the Manono lithium deposit to KoBold for fair value,” it said.
“The agreement will enable KoBold to rapidly deploy more than $US1bn to bring the Manono lithium to Western markets.
“The development of Manono will create thousands of high paying Congolese jobs for decades. AVZ enthusiastically endorses KoBold’s approach to investing in local talent.”
AVZ and KoBold said they were working with “all possible speed” to conclude the sale.
“AVZ and KoBold are working cooperatively with all stakeholders, including the US government, the DRC government, and AVZ’s current development partner,” they said.
The Australian understands Mr Tshisekedi has given his blessing to the AVZ-KoBold deal. Mr Tshisekedi is thought to have told US special envoy Massad Boulos and other stakeholders that he’d been looking for a solution to the Manono “problem” for a long time and found it in the AVZ-KoBold agreement.
AVZ scored a partial victory over the DRC and giant Chinese miner Zijin in the International Court of Arbitration of the International Chamber of Commerce (ICC) in March.
The company, whose shares were delisted in 2024, maintains the DRC acted illegally by taking over its permit over the whole of Manono and then awarding the northern portion to a Zijin subsidiary in September 2023.
AVZ will propose to the DRC government that they suspend the international arbitration proceedings to facilitate discussions on handing back its licence to clear the way for the KoBold deal.
Sources close to Mr Ferguson said he had been working tirelessly in Washington to secure the best possible deal for AVZ shareholders given there is no guarantee the DRC would adhere to any eventual arbitration ruling in AVZ’s favour. The ICC awarded a $67.5m penalty against DRC-owned mining company Cominière in March because it ignored previous emergency orders in the dispute.
AVZ has asked some of its disgruntled shareholders to show restraint in social media posts on the DRC and its government given the delicate state of negotiations on Manono.
The Australian broke the news of Washington’s unlikely advocacy for AVZ back in March and then flagged the deal with California-based KoBold.
Mr Boulos, the father-in-law of Mr Trump’s daughter Tiffany and his adviser on Arab and Middle Eastern affairs, was sent to Kinshasa early last month, to discuss a critical minerals pact with the DRC in return for security.
Manono boasts an 842 million tonne resource at 1.61 per cent lithium oxide and is split into two geographically distinct northern and southern deposits. The southern part alone, sometimes referred to as Roche Dure, holds a 669 million tonne resource.
The US has indicated it is willing to back AVZ retrieving the southern licence to minimise antagonising China with Zijin well advanced in developing the northern deposit.
It is understood both the US and KoBold favour a change of ownership based on AVZ and the DRC discontinuing legal action.
The US also wants any sale by AVZ to not be complicated by links to China’s CATL – the world’s biggest electric vehicle battery manufacturer, which in January provided $20m in funding to AVZ to help the company finance the legal battle for Manono.
Gates and Bezos-backed mining and artificial intelligence start-up KoBold may opt to bring in a partner to help develop Manono.
The project has also caught the eye of Rio Tinto, which has so far refused to comment on any interest.
The Australian has also reported that other her assets on the US radar in the DRC include cobalt and copper deposits controlled by Trafigura-backed Chemaf. Dubai-based Chemaf reportedly failed to gain DRC approval for a sale to an arm of Chinese state-owned defence manufacturer Norinco Group
China already has a significant presence in the DRC, which is rich in copper, cobalt, tin and uranium.
Brad Thompson
Brad Thompson
Mining reporter
Thanks Elmitso for sharing this.......well, looks like the drum beat is getting faster.
A few points on reading this.
a) The Australian understands Mr Tshisekedi has given his blessing to the AVZ-KoBold deal.
Mr Tshisekedi is thought to have told US special envoy Massad Boulos and other stakeholders that he’d been looking for a solution to the Manono “problem” for a long time and found it in the AVZ-KoBold agreement.
Laughable! ( breathe Beisha, show restraint )
b) Sources close to Mr Ferguson said he had been working tirelessly in Washington to secure the best possible deal for AVZ shareholders
given there is no guarantee the DRC would adhere to any eventual arbitration ruling in AVZ’s favour.
Good on you Nige...........and too true.
c) AVZ has asked some of its disgruntled shareholders to show restraint in social media posts on the DRC and its government given the delicate state of negotiations on Manono.
@Stockinvesting ........does Nige need to grow up ?
d) The US has indicated it is willing to back AVZ retrieving the southern licence to minimise antagonising China with Zijin well advanced in developing the northern deposit.
So farken Zijin get rewarded for stealth ? Not happy Jan, AVZ better get good compensation !!!!
e) It is understood both the US and KoBold favour a change of ownership based on AVZ and the DRC
discontinuing legal action.
Legals better be as tight as a fishes arsehole ! Money in the bank prior, not a DRC bank either ...
f) The US also wants any sale by AVZ to not be complicated by links to China’s CATL
Bye bye too faced Cath......you have been stiffed.
g ) AVZ and KoBold said they were working with “
all possible speed” to conclude the sale.
Great, then 21000 shareholders can reclaim their financial lives after 3 yrs of misery..........the big question remains, what is " FAIR VALUE " ?
Thanks Don, but i aint sucking you off......yet. ( sorry
@Nellie17 )
It better be good !
