AVZ Discussion 2022
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Lithium de Manono : Jules Alingete charge le DG a.i. de la COMINIERE pour bradage et mauvaise gestion - L'info qui fait échos
Depuis quelques mois, le consortium « LA RDC ET SON PEUPLE D’ABORD », constitué d’organisations non gouvernementales et médias membres de la coalition « TOUS POUR LA RDC », <a class="mh-excerpt-more"...
econewsrdc.com
For several months, the consortium "THE DRC AND ITS PEOPLE D'ABORD", made up of non-governmental organizations and media members of the coalition "TOUS POUR LA RDC", the Network of Communicators for the Environment (RCEN) and partner media are increasingly interested in the operation of public mining companies forgotten by the public and which seem to be of less importance to the Government even though they possess significant deposits and have signed partnerships as much as Gécamines and Sokimo did. Spotlight on the lithium of Manono, in the province of Tanganyika, which involves COMINIERE, a company of the State Portfolio. What exactly is it. Word to the General Inspectorate of Finance (IGF).
Having consulted several documents relating to the Congolaise d'Exploitation Minière SA (COMINIERE), he concluded that there was poor management and above all the impunity of the managers whose interim dates back several years, a record achieved, without this being of interest to the government or parliament supposed to defend the interests of the country and the people.
Indeed, everything suggests that only two partnerships (SEGMAL with MMR and DATHCOM with DATHO-MIR and AVZ) are viable while others are not despite dozens of tons of coltan illegally exploited by a subsidiary of a Canadian company and subject of a legal case concerning the United COMINIERE (UC) partnership. A series of publications will henceforth be devoted to it in order to provide objective information on what is happening.
This first publication concerns the Dathcom Mining partnership and will be made in two stages, the first of which reviews the partnership contract and the final observations sheet addressed to the general manager ai of COMINIERE SA on April 04, 2022 through the correspondence referenced N ° 0552 /PR/IGF/OM 54-2022/NMM/2022, as well as on the basis of the document entitled "Amendment No. 1 to the Joint-Venture Agreement entered into on March 25, 2017 between LA CONGOLAISE D'EXPLOITATION MINIERE SA (COMINIERE) represented by Mr. Athanase MWAMBA MISAO, Acting General Manager; AVZ MINERALS LIMITED represented by Mr. KLAUS ECKHOF, Managing Director; DATHCOM MINING SAS represented by its President CONG MAOHUAI; DATHO-MIR MINING RESOURCES SARL represented by Mr. CONG MAOHUAI ,
Illegal transfers of undervalued shares in DATHCOM Mining for the benefit of the Chinese and poor management of revenues
To date, this mining company of the State Portfolio only owns 10% of the shares in the joint venture company while it held 30% before its sales operations contested by the General Inspectorate of Finance to DATHOMIR and ZIJ-JIN, companies with Chinese interests. The Australian-American group AVZ holds 60% while the two DATHOMIR and ZIJIN share the rest equally.
According to this two-page correspondence, signed by MM MUHIYA LUMBU Nicolas (Inspector General of Finance Head of Brigade of Revenue and Tax Services) and ALINGETE KEY Jules (Inspector General of Finance - Head of Service), it is written this on page 2 “The mission made three main observations, namely:
- The sale of the 15% of COMINIERE's shares in DATHCOM Mining to ZIJIN Mining was carried out in violation of the legal provisions on the withdrawal of the State from the companies in the Portfolio and caused, with regard to the evaluations made in the study of feasibility , a significant shortfall for the Public Treasury estimated at USD116,560,000.00 (US dollars one hundred and sixteen million five hundred and sixty thousand). It was a real selling off of the State's mining heritage, for which you are responsible;
- Of the total amount of proceeds from the sale of 15% of the shares, which amounts to USD33,440,000.00 (US dollars thirty-three million four hundred and forty thousand), you have already used approximately USD 6,800,000.00 (US dollars six million eight hundred thousand) for operating needs to the detriment of productive investments including USD 5,438,198.00 (US dollars five million four hundred thirty-eight thousand one hundred and ninety-eight) for commissions, snacks, fees, exceptional remuneration of all those who would have contributed to the operation;
- The presumed free and provisional transfer of 5% of COMINIERE's shares in DATHCOM Mining to DATHOMIR Mining Sarl, but which with regard to the transfer contract, was final and irrevocable without the income from the transfer being traced to COMINIERE. “
Among other observations of the IGF, the most interesting to mention are:
- The violation, by the partners of COMINIERE SA, of the contractual provisions prohibiting them from selling their shares before the date of commercial production without giving rise to any reaction on your part;
- The choice of consultants FOCUS PLAIDOIRIE, Alpha BUSINESS COMPANY and Association of Mining and Quarrying Agents, over the counter in violation of public procurement legislation;
- The transfer of Exploration Permits without payment of the transfer price to COMINIERE when the transfer contract provides for it;
- Illegal assignments of Mining Titles by Assignees to the detriment of COMINIERE SA…”.
The feasibility study that the IGF talks about is the one made by AVZ and presented by DATHCOM Mining to the government in accordance with the mining legislation of the Democratic Republic of Congo, our consortium has read a copy of the summary.
The transfer of 15% of the shares of COMINIERE to ZIJIN Mining Ldt (a Chinese group shareholder of Gécamines in COMMUS and of IVANHOE in Kamoa Copper in Lualaba) was made with authorization "by the two owners (Congolese State and CNSS)", according to the letter Ref: CEM/DG/074/amm/2021 of 09/17/2021 signed by Athanase MWAMBA MISAO, general manager ai of COMINIERE SA, addressed "To Mr. Christian LUKUSA , legal counsel for AVZ Minerals, of which we have seen a copy.
And in its letter Ref: CEM/DG/073/amm/2021 of 09/17/2021 signed by Athanase MWAMBA MISAO, addressed "To Mr. NIGEL FERGUSON, President of the Company DATHCOM MINING SAS", having for object: "Notification of transfer of 15% of COMINIERE SA shares and request to convene an EGM", of which our consortium has seen a copy, it is thus written from the first to the third paragraphs: "We have the advantage of notifying you of the sale of 15% of COMINIERE SA in favor of ZIJIN MINING COMPANY Ltd. It should be noted that we have complied with the statutory clauses by duly informing the two other shareholders, namely on the one hand, DATHOMIR Mining Resources SARLU which had encouraged negotiations on the share purchase proposal formulated by the company ZIJIN MINING COMPANY Ltd and on the other hand,correspondence was sent to the AVZ shareholder who did not exercise his right of first refusal within the required period (Article 11.2 of the statutes of DATHCOM MINING SAS). In addition, as a State Portfolio Company, our company has obtained the approval of the Minister of State, Minister of Portfolio for this transfer”.
But IGF is clear about the fact that there was a violation of the law during this transfer, whether by order of the supervising minister or the owners despite Dathomir's non-objection: "The control team maintains the observation , because the general manager ai is effectively content to transfer the mining rights without valuing them beforehand. Aware that the partnerships initiated do not really benefit the State-owner, the Director General ai is embarrassed to display the meager results he has obtained. He was therefore unable to prove the contrary.
This is the position of the IGF in its document referenced FO/54&73/PR/IGF/IG-CS/JAK/BRF/2022, a copy of which we have read.
Regarding the transfer of 5% of the shares of COMINIERE to DATHOMIR belonging to another Chinese, COMINIERE told the IGF investigators the following: "The Company DATHO-MIR MINING SA had requested from COMINIERE SA the transfer of 5 % of action to enable it to raise the necessary funds for the rehabilitation of the Lubumbashi-Manono road. This assignment was temporary and motivated by this single imperative. COMINIERE SA submitted this question to the Minister of Portfolio who gave his agreement in principle. However, concerning the monitoring committee, COMINIERE SA was set aside because the monitoring was the responsibility of an ad hoc commission composed of the Ministry of Portfolio, the Ministry of Infrastructure and the Congolese Agency for Major Works”.
A position rejected by the IGF which decides: “Not only that the prerequisites were not satisfied, but moreover and above all, there was use of forgery on the part of the Director General ai who, in his correspondence, did not hadn't told the Minister of Portfolio the truth. Indeed, the contract for the transfer of the 5% shares of COMINIERE SA signed on November 27, 2017 with the company DATHOMIR MINING SARL, duly notarized contract, makes the following findings: far from being provisional, the transfer of 5% of the shares of COMINIERE to DATHCOM MINING was indeed definitive and irrevocable; Far from being free, the transfer was made at a price agreed between the parties, but not stated anywhere in the transfer contract for reasons known only to the Managing Director.
The IGF notes with surprise that the Director General has defended DATHOMIR tooth and nail, therefore engages his responsibility in all that he is accused of.
Ignorance of the IGF report or complicit silence from the government?
The Ministry of Portfolio appears to be the great accomplishment of the current poor health of this State mining company for several reasons, including the non-renewal of representatives and the poor health of this company under its supervision, while the Ministry of Justice seems to have ignored the clear recommendations of the recent audit of the General Inspectorate of Finance as well as the decisions of its own services in addition to the judgments of the courts and tribunals of Lubumbashi against certain partners.
What is the follow-up reserved by the Prime Minister, the Ministers of the Portfolio and of Justice to these serious revelations of the General Inspectorate of Finances (IGF) having established the criminal responsibility of the general manager ai of COMINIERE on the illegal and irregular transfer shares, their undervaluation, the misuse of income as well as sales money not traced by the financial watchdog of the Presidency in the accounts of this company in the State Portfolio since the beginning of the month from April 2022? When will the appointment of new patriotic and conscientious agents at the head of public mining companies such as COMINIERE and SOKIMO under the management of temporary workers for several years, at SODIMICO, ENTREPRISE MINIERE KISENGE MANGANESE,SAKIMA as well as MIBA which seem not to interest the leaders of the country? The rule of law that the President of the Republic, Félix Tshisekedi, wants and the efficient management of the people's mineral resources also depend on it.
The colleagues of the Kinshasa newspaper "Le Soft International" had already launched the alert on the scandal committed by COMINIERE in its edition N ° 1550 of April 11, 2022 without any institution of the Republic reacting, we repeat it and will continue to do so . to do by way of our support for the fight of the Head of State against the predators of public goods, a pillar of his vision of natural resources which must benefit the people first and not a few individuals whoever they are.
A survey carried out by EcoNews, Forum des As, Congo Nouveau, Leader, Mining News Magazine, Le Socle and the “Tous pour la RDC” coalition.
"Australian-American group AVZ"
JAG
Top 20
NO ARBITRATION. I have always stated "We will not attend" and yes its my lefty that's on the line.
News, yes...IMO
Just wait for Franks report to sink in a bit once released.....there's a few people booking flights out of the DRC right now
Roller62
Regular
He is probably Klaus
Hope so at 63 I just want to retire and help my kidsNO ARBITRATION. I have always stated "We will not attend" and yes its my lefty that's on the line.
News, yes...IMO
Just wait for Franks report to sink in a bit once released.....there's a few people booking flights out of the DRC right now
Mouthpiecenomnom
Regular
Good month for lithium. I predicted mid-july for recovery but I was off by about 3 weeks (pulled out of my rear-end) . US democratic house of reps soon to sign off on climate bill including EV subsidies. Expecting record highs by Xmas assuming no black Swan events. Fingers crossed! AVZ feels like the worm is turning yet again for the positive. But my God she is a slow turner!
Winenut
Go AVZ!
Didn't know you'd put yours on the line like Jag!
Samus
Top 20
Lithium de Manono : Jules Alingete charge le DG a.i. de la COMINIERE pour bradage et mauvaise gestion - L'info qui fait échos
Depuis quelques mois, le consortium « LA RDC ET SON PEUPLE D’ABORD », constitué d’organisations non gouvernementales et médias membres de la coalition « TOUS POUR LA RDC », <a class="mh-excerpt-more"...
For several months, the consortium "THE DRC AND ITS PEOPLE D'ABORD", made up of non-governmental organizations and media members of the coalition "TOUS POUR LA RDC", the Network of Communicators for the Environment (RCEN) and partner media are increasingly interested in the operation of public mining companies forgotten by the public and which seem to be of less importance to the Government even though they possess significant deposits and have signed partnerships as much as Gécamines and Sokimo did. Spotlight on the lithium of Manono, in the province of Tanganyika, which involves COMINIERE, a company of the State Portfolio. What exactly is it. Word to the General Inspectorate of Finance (IGF).
Having consulted several documents relating to the Congolaise d'Exploitation Minière SA (COMINIERE), he concluded that there was poor management and above all the impunity of the managers whose interim dates back several years, a record achieved, without this being of interest to the government or parliament supposed to defend the interests of the country and the people.
Indeed, everything suggests that only two partnerships (SEGMAL with MMR and DATHCOM with DATHO-MIR and AVZ) are viable while others are not despite dozens of tons of coltan illegally exploited by a subsidiary of a Canadian company and subject of a legal case concerning the United COMINIERE (UC) partnership. A series of publications will henceforth be devoted to it in order to provide objective information on what is happening.
This first publication concerns the Dathcom Mining partnership and will be made in two stages, the first of which reviews the partnership contract and the final observations sheet addressed to the general manager ai of COMINIERE SA on April 04, 2022 through the correspondence referenced N ° 0552 /PR/IGF/OM 54-2022/NMM/2022, as well as on the basis of the document entitled "Amendment No. 1 to the Joint-Venture Agreement entered into on March 25, 2017 between LA CONGOLAISE D'EXPLOITATION MINIERE SA (COMINIERE) represented by Mr. Athanase MWAMBA MISAO, Acting General Manager; AVZ MINERALS LIMITED represented by Mr. KLAUS ECKHOF, Managing Director; DATHCOM MINING SAS represented by its President CONG MAOHUAI; DATHO-MIR MINING RESOURCES SARL represented by Mr. CONG MAOHUAI ,
Illegal transfers of undervalued shares in DATHCOM Mining for the benefit of the Chinese and poor management of revenues
To date, this mining company of the State Portfolio only owns 10% of the shares in the joint venture company while it held 30% before its sales operations contested by the General Inspectorate of Finance to DATHOMIR and ZIJ-JIN, companies with Chinese interests. The Australian-American group AVZ holds 60% while the two DATHOMIR and ZIJIN share the rest equally.
According to this two-page correspondence, signed by MM MUHIYA LUMBU Nicolas (Inspector General of Finance Head of Brigade of Revenue and Tax Services) and ALINGETE KEY Jules (Inspector General of Finance - Head of Service), it is written this on page 2 “The mission made three main observations, namely:
- The sale of the 15% of COMINIERE's shares in DATHCOM Mining to ZIJIN Mining was carried out in violation of the legal provisions on the withdrawal of the State from the companies in the Portfolio and caused, with regard to the evaluations made in the study of feasibility , a significant shortfall for the Public Treasury estimated at USD116,560,000.00 (US dollars one hundred and sixteen million five hundred and sixty thousand). It was a real selling off of the State's mining heritage, for which you are responsible;
- Of the total amount of proceeds from the sale of 15% of the shares, which amounts to USD33,440,000.00 (US dollars thirty-three million four hundred and forty thousand), you have already used approximately USD 6,800,000.00 (US dollars six million eight hundred thousand) for operating needs to the detriment of productive investments including USD 5,438,198.00 (US dollars five million four hundred thirty-eight thousand one hundred and ninety-eight) for commissions, snacks, fees, exceptional remuneration of all those who would have contributed to the operation;
- The presumed free and provisional transfer of 5% of COMINIERE's shares in DATHCOM Mining to DATHOMIR Mining Sarl, but which with regard to the transfer contract, was final and irrevocable without the income from the transfer being traced to COMINIERE. “
Among other observations of the IGF, the most interesting to mention are:The criminal responsibility of the manager, according to the IGF
- The violation, by the partners of COMINIERE SA, of the contractual provisions prohibiting them from selling their shares before the date of commercial production without giving rise to any reaction on your part;
- The choice of consultants FOCUS PLAIDOIRIE, Alpha BUSINESS COMPANY and Association of Mining and Quarrying Agents, over the counter in violation of public procurement legislation;
- The transfer of Exploration Permits without payment of the transfer price to COMINIERE when the transfer contract provides for it;
- Illegal assignments of Mining Titles by Assignees to the detriment of COMINIERE SA…”.
The feasibility study that the IGF talks about is the one made by AVZ and presented by DATHCOM Mining to the government in accordance with the mining legislation of the Democratic Republic of Congo, our consortium has read a copy of the summary.
The transfer of 15% of the shares of COMINIERE to ZIJIN Mining Ldt (a Chinese group shareholder of Gécamines in COMMUS and of IVANHOE in Kamoa Copper in Lualaba) was made with authorization "by the two owners (Congolese State and CNSS)", according to the letter Ref: CEM/DG/074/amm/2021 of 09/17/2021 signed by Athanase MWAMBA MISAO, general manager ai of COMINIERE SA, addressed "To Mr. Christian LUKUSA , legal counsel for AVZ Minerals, of which we have seen a copy.
And in its letter Ref: CEM/DG/073/amm/2021 of 09/17/2021 signed by Athanase MWAMBA MISAO, addressed "To Mr. NIGEL FERGUSON, President of the Company DATHCOM MINING SAS", having for object: "Notification of transfer of 15% of COMINIERE SA shares and request to convene an EGM", of which our consortium has seen a copy, it is thus written from the first to the third paragraphs: "We have the advantage of notifying you of the sale of 15% of COMINIERE SA in favor of ZIJIN MINING COMPANY Ltd. It should be noted that we have complied with the statutory clauses by duly informing the two other shareholders, namely on the one hand, DATHOMIR Mining Resources SARLU which had encouraged negotiations on the share purchase proposal formulated by the company ZIJIN MINING COMPANY Ltd and on the other hand,correspondence was sent to the AVZ shareholder who did not exercise his right of first refusal within the required period (Article 11.2 of the statutes of DATHCOM MINING SAS). In addition, as a State Portfolio Company, our company has obtained the approval of the Minister of State, Minister of Portfolio for this transfer”.
But IGF is clear about the fact that there was a violation of the law during this transfer, whether by order of the supervising minister or the owners despite Dathomir's non-objection: "The control team maintains the observation , because the general manager ai is effectively content to transfer the mining rights without valuing them beforehand. Aware that the partnerships initiated do not really benefit the State-owner, the Director General ai is embarrassed to display the meager results he has obtained. He was therefore unable to prove the contrary.
This is the position of the IGF in its document referenced FO/54&73/PR/IGF/IG-CS/JAK/BRF/2022, a copy of which we have read.
Regarding the transfer of 5% of the shares of COMINIERE to DATHOMIR belonging to another Chinese, COMINIERE told the IGF investigators the following: "The Company DATHO-MIR MINING SA had requested from COMINIERE SA the transfer of 5 % of action to enable it to raise the necessary funds for the rehabilitation of the Lubumbashi-Manono road. This assignment was temporary and motivated by this single imperative. COMINIERE SA submitted this question to the Minister of Portfolio who gave his agreement in principle. However, concerning the monitoring committee, COMINIERE SA was set aside because the monitoring was the responsibility of an ad hoc commission composed of the Ministry of Portfolio, the Ministry of Infrastructure and the Congolese Agency for Major Works”.
A position rejected by the IGF which decides: “Not only that the prerequisites were not satisfied, but moreover and above all, there was use of forgery on the part of the Director General ai who, in his correspondence, did not hadn't told the Minister of Portfolio the truth. Indeed, the contract for the transfer of the 5% shares of COMINIERE SA signed on November 27, 2017 with the company DATHOMIR MINING SARL, duly notarized contract, makes the following findings: far from being provisional, the transfer of 5% of the shares of COMINIERE to DATHCOM MINING was indeed definitive and irrevocable; Far from being free, the transfer was made at a price agreed between the parties, but not stated anywhere in the transfer contract for reasons known only to the Managing Director.
The IGF notes with surprise that the Director General has defended DATHOMIR tooth and nail, therefore engages his responsibility in all that he is accused of.
Ignorance of the IGF report or complicit silence from the government?
The Ministry of Portfolio appears to be the great accomplishment of the current poor health of this State mining company for several reasons, including the non-renewal of representatives and the poor health of this company under its supervision, while the Ministry of Justice seems to have ignored the clear recommendations of the recent audit of the General Inspectorate of Finance as well as the decisions of its own services in addition to the judgments of the courts and tribunals of Lubumbashi against certain partners.
What is the follow-up reserved by the Prime Minister, the Ministers of the Portfolio and of Justice to these serious revelations of the General Inspectorate of Finances (IGF) having established the criminal responsibility of the general manager ai of COMINIERE on the illegal and irregular transfer shares, their undervaluation, the misuse of income as well as sales money not traced by the financial watchdog of the Presidency in the accounts of this company in the State Portfolio since the beginning of the month from April 2022? When will the appointment of new patriotic and conscientious agents at the head of public mining companies such as COMINIERE and SOKIMO under the management of temporary workers for several years, at SODIMICO, ENTREPRISE MINIERE KISENGE MANGANESE,SAKIMA as well as MIBA which seem not to interest the leaders of the country? The rule of law that the President of the Republic, Félix Tshisekedi, wants and the efficient management of the people's mineral resources also depend on it.
The colleagues of the Kinshasa newspaper "Le Soft International" had already launched the alert on the scandal committed by COMINIERE in its edition N ° 1550 of April 11, 2022 without any institution of the Republic reacting, we repeat it and will continue to do so . to do by way of our support for the fight of the Head of State against the predators of public goods, a pillar of his vision of natural resources which must benefit the people first and not a few individuals whoever they are.
A survey carried out by EcoNews, Forum des As, Congo Nouveau, Leader, Mining News Magazine, Le Socle and the “Tous pour la RDC” coalition.
"Australian-American group AVZ"
While this article seems like largely good news (in relation to zijin claims) there are also some elements that remain slightly troubling imo."The Australian-American group AVZ holds 60% while the two DATHOMIR and ZIJIN share the rest equally."
"And in its letter Ref: CEM/DG/073/amm/2021 of 09/17/2021 signed by Athanase MWAMBA MISAO, addressed "To Mr. NIGEL FERGUSON, President of the Company DATHCOM MINING SAS"
"The colleagues of the Kinshasa newspaper "Le Soft International" had already launched the alert on the scandal committed by COMINIERE in its edition N ° 1550 of April 11, 2022 without any institution of the Republic reacting, we repeat it and will continue to do so ."
Regardless of all euphoria......
It is clear that JAK of IGF is fighting for fair value for the DRC and not for AVZ.
Does this mean that the 15% sale of Dathcom to Zijin will be cancelled as invalid and shares have to be transferred back?
Does it mean that the transfer of 5% of Dathcom shares to Dathomir will be cancelled and shares transferred back?
And does AVZ still have to fight Dathomir for the shares it paid for?
Before I put any champagne on ice, I need to know more.
If AVZ only has 60%, before it can sell 24% to Cath, It still needs 75%.
As things stand atm, I can't see AVZ coming out of trading suspension next week.
@JAG
Some awesome sleuthing brother, thanks for taking the time and effort to share all this promising news !!
I am feeling alot more confident of AVZ rightful position, but like @cruiser51 , i will keep that champagne on ice until all this is confirmed via the ASX announcements....
Lithium stocks are pumping, alot of stocks are now sitting on 50% gains from their respective lows, including a few gems of my own ( nice 30k earn today alone ), so its time for the MONSTER from MANONO, to get back on the trading table ASAP and join in on the fun !!
Some awesome sleuthing brother, thanks for taking the time and effort to share all this promising news !!
I am feeling alot more confident of AVZ rightful position, but like @cruiser51 , i will keep that champagne on ice until all this is confirmed via the ASX announcements....
Lithium stocks are pumping, alot of stocks are now sitting on 50% gains from their respective lows, including a few gems of my own ( nice 30k earn today alone
), so its time for the MONSTER from MANONO, to get back on the trading table ASAP and join in on the fun !!
JAG
Top 20
Didn't know you'd put yours on the line like Jag!
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