Hot off the presses. Interesting discussions in this article. More positive then negative
Can't blame the locals for asking for a larger share, unfortunately that is just uncommercial.
Controversy around Manono's lithium: "We are moving towards a fair solution that will avoid repetitive revisions", reassures the CAMI
August 24, 2022 TIGHANA MASIALA Development,
NEWS FEED,
Society 0
Souvenir photo of the CERN/CENCO conference
Manono's lithium is surrounded by great controversy. If Dathcom, the company that proposes to exploit this strategic mineral in Tanganyika province, says it has completed all feasibility studies in Kinshasa, the Government, which wants not to lose control of Manono's lithium, wants to see a little clear in the financial package of Dathcom, a joint venture formed between AVZ, Cominière, Dathomir and a Whatever the length of the night, the day always ends up emerging," says an old saying.The most important thing is that all parties involved in the Manono lithium project are willing to move forward by finding a solution that would guarantee each other's interests.Here is in full, the final communiqué of the Manono lithium conference, organized on August 11,
Very committed to the rational management of natural resources, the Episcopal Commission on Natural Resources of CENCO (CERN/CENCO) invited experts in the sector to the CEPAS located in the commune of La Gombe in Kinshasa to a reflection without taboo.
Far from taking sides for anyone, CERN/CENCO rather displays a more conciliatory position by inviting everyone to silence their differences to advance this project. To the delight of the DRC and its people, especially the people of Manono and Tanganyika province.
Econews pointed out as the main blocking point of this project, the Mining Cadastre (CAMI), which was approached by Econews, defends itself: "Administrative burden is a matter of state. The CAMI, which is a structure of the Government, is only an instrument that has been used to correct the imperfections of the project, which went straight towards the disaster that the nation and future generations would not forgive us. We are moving towards a fair solution that will prevent us from repetitive revisions that an irresponsible civil society is demanding as in the situations of other projects on cobalt, gold, copper where the public authorities are accused of having sold sold the country's wealth!" At CAMI, white smoke is announced in the next few days. "The discussions are moving in the right direction," says the source.
Now another ore, lithium, has just been highlighted by the research of AVZ Minerals Limited, an Australian multinational partner of the Congolese company Cominiere, in the joint venture DATHCOM Mining SA. The lithium reserve located in the territory of Manono, Tanganyika province, still in the former large province of Katanga, is presented as the largest in the world. But the question arises whether this time the DRC will be able to take advantage of its lithium.
Final communiqué of the Manono Lithium Conference in the DRC
The world is facing global warming. One of the solutions to reduce greenhouse gas emissions responsible for this warming is the abandonment of fossil fuels. Alternative energy is needed. For locomotion, one of the solutions found is the use of electric vehicles that need batteries with high energy accumulation and conservation capacity. These batteries currently have cobalt and lithium as essential components. The Democratic Republic of Congo holds almost 60% of the world's cobalt reserves currently exploited by companies with majority foreign capital: China, through Tenke Fungurume Mining and Sicomines, Switzerland, through its multinational Glencore. Struggled to recover, the state company, Gécamines, offers only a very low participation, compared to that of joint ventures where it is associated with these foreign partners.
A conference on lithium
To reflect on this, the Episcopal Commission for Natural Resources of the National Episcopal Conference of Congo, CERN/CENCO, organized, on August 11, 2022, at the Center for Social Action Studies (CEPAS) in Kinshasa, under the cover of the Congo Basin Ecclesial Network (REBAC), a conference under the theme: "How can Manon Multi-stakeholder reflection on the sidelines of PRECOP27".
More than fifty participants representing different social and professional categories took part in the conference: delegates from the ministries concerned by the mining project, namely the Ministry of Mines, the Ministry of Portfolio and the Ministry of the Environment. The Technical Secretariat of the Extractive Industries Transparency Initiative (EITI) was represented by its Coordinator, accompanied by its collaborators. In addition to delegates from Dathcom's partner companies, namely AVZ and Cominière, the Mining Cadastre was represented. Other companies in the cobalt sector were present. Civil society organizations and delegates from the communities of Manono took an active part in the conference, not to mention the media that covered the event.
Five communications, after reading the terms of reference for the activity by the CERN Executive Secretary and REBAC/DRC Coordinator, Mr. Henri MUHIYA, allowed participants to understand the issues and challenges of Manono's lithium mining in order to contribute to the energy transition and guarantee the DRC and the population that will be affected by the lithium mining project. Moderation was expertly ensured by Ms. Madeline ANDEKA OLONGO.
A word from CENCO
The Secretary General of CENCO, Monsignor Donatien NSHOLE, delivers the word of welcome. It meets the challenges of climate justice awaited by the DRC that offers the world its various natural potentialities necessary to fight climate change: dense tropical forest, peatlands, fresh water, biodiversity, minerals essential to the energy transition. But conversely, the DRC is facing endless wars between several powers for access to the DRC's natural resources and curiously these powers are among the major emitters of greenhouse gases and are responsible for global warming.
In addition, Monsignor Nshole criticizes the fact that Congolese negotiators of mining contracts often do so by favoring selfish interests rather than the general interest. This makes the country lack the resources necessary for development and the fight against poverty.
The role of lithium
Mr. Raphaël Ngoy, expert geologist, former Gécamines and with international experience, traces the global need for energy diachronically from the years of industrialization. It highlights the role of lithium alongside cobalt and global needs in terms of access to minerals useful for the energy transition. He thinks this is a favorable wind for the DRC, but notes that the mining management of the DRC is a kind of visual navigation without knowing where you want to go without precise vision. What the Cominière thinks about lithium recovery
The DRC has the assets to host battery manufacturing companies: among four major components of batteries for electric vehicles, the DRC has cobalt and lithium in Greater Katanga, graphite deposits in central Kongo, but it could also be imported from Mozambique, a member of the SADC (Southern African Development Community), while nickel could be imported from neighboring Zambia, also a member of SA
For his part, Maître Popol MUAMBA, Counsel of the Cominière, developed his presentation to answer the question: "How does the DRC intend to enhance this strategic resource (lithium) and benefit from it? State of play of the Manono lithium project". The intervener believes that it is the Ministry of Mines and the Ministry of Industry that have the appropriate response. Recalling that the DRC is a major producer of cobalt, germanium and coltan, he informed participants of the holding in Kinshasa, on November 24 and 25, 2021, of the "DRC-Africa Business Forum on the development of value chains and the market for batteries, electric vehicles and renewable energies in Africa" where the country has shown its ambition to develop value chains in
Following this forum where the DRC was presented as the best space for the establishment of battery production plants, a cooperation agreement to facilitate the development of the value chain in the electric batteries and clean energy sector was signed between Zambia and the DRC. A DRC-Zambia Battery Council has been set up to oversee the said agreement.
A summary of the feasibility study
Mr. Serge Ngandu spoke on behalf of AVZ Minerals Limited, the majority shareholder of Dathcom Mining SA. After making a quick presentation of the company, he gave some essential elements of the project, the sustainable development goals, the company's skills in green energy, the investment cost estimated at US$545 million, the supply chain for lithium batteries, the creation of the Manono Special Economic Zone, the schedule of major work to be carried out and growth opportunities. This is a project with a lifespan of about 29 years for an ore reserve of about 400 million tons of lithium to 1.65% spodumene. Informing that the initial start date of the project was set for July 1, 2021 for commissioning between May and July 2023, Mr. Serge was outraged that the administrative burden causes a great delay to this program.
A contract not at all balanced
Speaking on behalf of Civil Society, Mr. Emmanuel Umpula made a brief analysis of the joint venture contract where he questioned the contribution of each partner, namely the Cominière, AVZ and Dathomir whose special role is not determined compared to the shares held.
Nurtured exchanges on Manono's lithium challenges the weakness in the negotiation of the joint venture contract, the heaviness of the mining administration, the unfulfilled expectations of the people of Manono, the issue of local transformation in the face of geostrategic interests.
At the end of the debates, four major challenges were raised:
Regarding the negotiation of the contract, participants questioned the fact that Cominière, a company in the State Portfolio, owner of the mining title, is currently in the joint venture with less than 30% shares, and even less than 20%. If AVZ acquired 60% of the shares from Dathomir and succeeded in conducting research to recover lithium deposits until the Research Permit (PR) was brought to the process of transformation into a License to Operate (PE), what role would Dathomir have played and what would be its contribution?Similarly, how would the Cominière have managed to cede other shares to Dathomir generously and irrevocably? To safeguard the country's interests, some participants proposed that the Dathcom joint venture be designed under the model of the DEZIWA company in Lualaba, where after almost 10 years, of reimbursement the investment cost cleared, the company becomes owned by the DRC: mines and equipment. Otherwise, it should be provided that after repayment of the capital with interest, repayment that commits the joint venture for which one party has contributed finance and technology and the other has contributed the "exhaustible" deposits, the shares should be revised to 50%/ 50% between foreign partners and the country.
Speaking of the administrative burden, it is also not understandable that the Mining Cadastre is dragging to notify the transformation of the PR into an EP, while, according to the Legal Advisor to the Minister of Mines, Dr. Dany Oleko, the Mining Cadastre had given its favorable cadastral opinion to the Minister of Mines who used it to sign the decree transform Mining Environment (DPEM).
The expectations of the people of Manono are clear. Through a national of Manono, mandated by the communities, deputies and the Bishop of Manono, the population of Manono who will be affected by the project asks "the Cominière and AVZ to silence their internal quarrels so that lithium mining finally begins".
As for local mineral processing and geostrategic issues, there is an urgent need to work on infrastructure, in priority the rehabilitation of the Mpiana Mwanga dam, the development or construction of access and evacuation roads. The creation of a special economic zone would allow other companies to settle and relay the construction component of the batteries thus enhancing the value chain of these minerals.
Main recommendations To the Government:
From conferences and exchanges, participants made the following main recommendations:
To ensure that the balance of earnings in the joint venture is ensured so that the interests of the Congolese State and the population are protected;
To examine the sale deemed irregular of the Cominière's shares in Dathomir for justice to be done;
Develop a coherent plan for the development of an ingredient-based battery manufacturing industry available to the DRC and nearby countries in the SADC region;
At the Ministry of Mines:
To ensure that the operation of its various services is harmonious and expeditious in order to avoid situations of inconsistency such as that relating to the transformation of Research Permit No. 13359 into an Operating Permit and its notification to DATHCOM, which implies implications of certain political actors;
To the company Cominière:
Improve its management and properly defend the interests of the Republic;
To the Cominière's partners in DATHCOM, AVZ and Dathomir:
To be disposed of an exercise to rebalance shares in order to ensure justice in the gains on the Manono lithium project, since there can be no mining project without mining assets beforehand, moreover exhaustible.
At CERN/CENCO:
To continue to support the Manono lithium project through community capacity building and encouraging dialogue between the various actors involved.
Done at Kinshasa, August 11, 2022. Executive Secretary of CERN/CENCO
Henri MUHIYA MUSABATE
REBAC/DRC Coordinator
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