AVZ Discussion 2022

[Dazmac66]

HMMMMMMMM ........ from Solo
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CITIC HIC commenced business in 1958. After more than 50 years of evolution and development it has become a significant global supplier of mining and cement equipment. The works of CITIC HIC are located in Luoyang, China. CITIC HIC produces over 200,000 tons of quality equipment annually.

 

[JAG]

 

[JAG]

 

[wombat74]

CITIC HIC commenced business in 1958. After more than 50 years of evolution and development it has become a significant global supplier of mining and cement equipment. The works of CITIC HIC are located in Luoyang, China. CITIC HIC produces over 200,000 tons of quality equipment annually.

More importantly who is Shengtun Mining ?

 

[Bin59]

X, a few months ago @Bin59 posted a section of the DRC Mining Code that read along the lines that the percentage of the state owned portion of the project needed to be determined before awarding of the ML.

Not sure if that referred to either Cominiere or the DRC (which I think owns 90% of Cominiere) but I remember reading it in Bin59's post. I personally think the only thing holding it up is the DG of CAMI (Jean Felix Mupande) who I suspect is Cong's puppet, but at this stage we can only suspect this.

You may be right in your assumptions around Dathcom, and the areas relating to the PE, I just thought I'd add what I'd read in Bin's post to the conversation in case you wanted to check it.

Hi @MoneyBags1348 ,

I’ve just had another look through my posts, I think this might be the post you were referring to

AVZ Discussion 2022

was that Grinspoon? :ROFLMAO: Should wear my glasses ..@Winenit but never take them with or re check posts …noticed another post I left the E off please …with only 4 days to “Dry July “ think Ginspoon is an omen …enjoy the week SH

thestockexchange.com.au

 

[Rediah]

HMMMMMMMM ........ from Solo
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Every time some nobody shows up linking themselves to Manono, SHs are like ....

what does it mean in a bigger scheme of things ? Seems like everyone is entering Manono except us, having their fill, like the ungrateful relatives that show up as soon as they realise you have won big time in a lottery and start to associate themselves with you.

 

[JAG]

My man Kikki all over sending out positive press for Tantalex

 

[JAG]

 

[cruiser51]

• Home
• 2022
• october
• 24
• Accusations from journalist Tom Richardson and Boatman to AVZ Minerals on the Manono lithium project?

Image David Rowe
NEWSECONOMYINTERNATIONAL

Accusations from journalist Tom Richardson and Boatman to AVZ Minerals on the Manono lithium project?​

October 24, 2022
Kiki Kienge

By Kiki Kienge
Did AVZ Minerals accept the court ruling that would strip it of 15% of the shares in the Manono lithium project?
It is in an article published on October 24, 2022 on the Financial Review, that journalist Tom Richardson would accuse the Australian multinational, AVZ Minerals of having recognized the sentence of the court of the Democratic Republic of Congo of September 20, before the International Court of arbitration on the sale price of 15% in the Manono project with Dathomir of the Chinese citizen Cong Mao Huai says SimonCong, in August 2021 for an amount of US$21 million.
In the article there are accusations revealing that AVZ Minerals of having speculated on the lithium boom on the stock market, declaring that the Manono project was the largest lithium deposit in the world of this mineral, To reach a value of 4, US$5 billion.
Tom Richardson writes in particular, telling the London research company Boatman Capitale this:
“In response, Boatman asked attorneys Grosvenor Law to ask ASX and ASIC to investigate AVZ for allegedly misleading the market and failing to meet its disclosure obligations. »
Remember that Dathomir had signed a 15% sale agreement with AVZ Minerals for an amount of US$21 million. But Cong Mao Huai said SomonCong would have retracted after seeing the increase in value of the Manono project following the publication of the definitive feasibility study by AVZ Minerals.
According to journalist Tom Richardson, AVZ Minerals' acknowledgment of the award that would nullify the sale of 15% of Dathomir, would bring the shareholding in the Manono project to this :

1. AVZ Minerals with 60%
2. The Chinese group Zijin with 15%.
3. Dathomir with 15%.
4. La COMINIERE of the Congolese government with 10%.

But now, after a movement of Congolese NGOs asking the President of the Democratic Republic of Congo H. E. Félix Tshisekedi, the IGF (Inspection Générale des Finances) which works on behalf of the Presidency of the Republic, had published a report on COMINIERE which had been transmitted to the Court of Appeal of Gombe in Kinshasa. This report states that the sale of 15% of COMINIERE sold to the Chinese group ZIJIN was in violation of the provisions of the law of the Democratic Republic of Congo. Therefore illegal, something that will have to be confirmed by the Gombe Court of Appeal.
Sun Kuiyuan, in-house legal counsel for Chinese group Zijin Mining, had said that Zijin Mining is waiting for Zijin Mining's 15% stake in the Manono project to be dealt with in the ICC hearing which will be in April 2023, so that the misuse of Avz Minerals is sanctioned.
Recently, unless journalist Tom Richardson and Boatman Capital are unaware of it, in a meeting with the Minister of the portfolio, Adèle Kahinda Mahina in Kinshasa in the Democratic Republic of Congo, the representatives of the Chinese group ZIJIN Mining proposed to retrocede the 15% to the Congolese State and not to claim the price attached to it, asking to conclude a new partnership in the thermal baths to be defined with the Congolese government. This follows the report of the IGF (Inspection Générale des Finances), which in reality would cancel the purchase of 15 of ZIJING from COMINIERE, giving reason to AVZ Minerals which would keep the 75% in the Manono project.

 

[obe wan]

HMMMMMMMM ........ from Solo
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I had heard about 4 months ago that the company had ordered long leads ; however I didn't think to much more about it as the financial reports since didn't seem to suggest deposits were paid out of AVZ accounts, as these items would generally have at least a 10-15% up front payment

 

[wombat74]

I had heard about 4 months ago that the company had ordered long leads ; however I didn't think to much more about it as the financial reports since didn't seem to suggest deposits were paid out of AVZ accounts, as these items would generally have at least a 10-15% up front payment

It clearly says for Chengtun Mining not AVZ . They mine copper in the DRC .

 

[Dazmac66]

More importantly who is Shengtun Mining ?

Contractors??

 

[Samus]

Contractors??

Pirates

 

[obe wan]

It clearly says for Chengtun Mining not AVZ . They mine copper in the DRC .

Yes maybe a mix up, but they clearly refer to AVZs manono ; 401mt at 1.63%

 

[MoneyBags1348]

“ The licence is renewable thereafter for an additional period of five years, providing certain conditions are satisfied. “

https://thelawreviews.co.uk/title/the-mining-law-review/democratic-republic-of-the-congo-mining-law.

From the above article:

MINING RIGHTS AND REQUIRED LICENCES AND PERMITS​

i Introduction​

Underground minerals belong exclusively to the state. However, any private party may be authorised by the state to engage in mining activities (from exploration to exploitation and distribution), provided that specific objectives of eligibility, priority and capacity criteria set forth in the Mining Code are met. The types of mining permits available in the DRC are research permits, exploitation permits (including small-scale mines) and tailing exploitation permits. Specific legislation regarding artisanal mining and quarry rights also exists.

Companies that wish to develop mining activities in the DRC are required either to incorporate a Congolese company or to elect domicile with a 'mining agent' as a condition of eligibility to obtain an exploitation permit. In addition, to be eligible for a mining permit, companies are obliged to either form a joint venture with a state-owned company (such as Gécamines) that already holds the necessary permits, or freely assign a mandatory 10 per cent stake of its share capital to the DRC.

ii Surface and mining rights​

Any person wishing to engage in prospecting or reconnaissance activities must make a prior declaration to the Mining Cadastre and seek a prospecting permit. This permit entails no priority whatsoever in relation to potential future exploration or exploitation rights.

An exploration permit may be granted to any eligible private company for a period of five years, renewable once for the same duration, with respect to all mineral substances (Article 52). To be eligible for an exploration permit, a company must demonstrate a minimum financial capacity of at least five times the total amount of the annual surface rights payable for the area covered by the exploration permit (Article 58). The surface rights amount to US$5.89 per square metre (Article 397). In addition, the company will have to submit a rehabilitation and mitigation plan before starting any research activity. There are specific obligations for maintaining the permit, including the requirement to start exploration work within one year of delivery of the permit (Article 197).

Should the holder of a research permit demonstrate through a feasibility study the existence of an economically workable ore deposit (including tailings, for which specific permits exist) and sufficient financial capacity for the development, construction and exploitation of a mine, the Minister of Mines may grant an exploitation permit for a duration of 25 years, renewable for successive periods of 15 years. The exploitation permit may be refused by the Minister of Mines only for specific reasons, which are exhaustively listed in the Mining Code. Obtaining an exploitation permit obliges the operator to transfer to the state a free carry participation of 10 per cent of the operator's share capital (Article 71). In practice, however, operators that are engaged in joint ventures with state-owned permit holders, such as Gécamines, are not required to transfer 10 per cent of their share capital to the state.

In addition to exploration and exploitation permits, the Mining Code contains specific provisions with respect to artisanal or small to very small-scale mining rights, and quarry rights. Quarry rights relate to construction materials rather than mineral substances.

The timeline for obtaining an exploration or exploitation permit is as follows.

The Mining Cadastre has 20 working days to examine the request and to make a decision (Article 40). Following this, the Directorate of Mines must conduct a technical investigation. The office in charge of the protection of the environment examines the environmental impact study and the environment management plan. These reviews must be conducted within a period of time set forth in the Mining Code for each type of request (typically, for exploitation permits, within 30 working days for the Mining Cadastre, 60 working days for the Mining Directorate and 180 working days for the environmental investigation). Should any of the aforementioned authorities fail to reach a decision within the required time frame imposed by the Mining Code, the mining permit will be considered granted.

When a favourable decision is made, the Mining Cadastre will then grant the mining permit to the applicant, provided that the relevant surface rights have been paid for within 30 business days.

All mining rights are conveyable under the Mining Code. A specific right of amodiation (comparable to a long lease agreement) also entitles the holder of an exploitation permit to transfer all or part of such rights under a rental scheme. Exploitation permits can also be mortgaged. Finally, while mining rights are valid only for specified mineral substances, permits can be extended to additional minerals through specific procedures.

iii Additional permits and licences​

Processors of mineral substances who do not hold mining rights and whose activities are limited to processing activities must obtain a specific licence in this respect pursuant to the Mining Code.

iv Closure and remediation of mining projects​

The holder of a research permit will also have to submit a rehabilitation plan for the site after its closure to be eligible for an exploitation permit. The closure of a research or exploitation centre must be promptly notified to the Mining Administration.8

The holder of the mining rights is required to obtain a financial guarantee in an amount sufficient to carry out environmental rehabilitation.

IV ENVIRONMENTAL AND LABOUR CONSIDERATIONS​

i Environmental, health and safety regulations​

The New Mining Code and the Mining Regulations contain several environmental and health and safety regulations. Environmental regulations are by far the most detailed.

While most health and safety regulations are contained in the Congolese Labour Code, and are therefore not specific to the mining sector, the Mining Regulations do contain specific safety directives regarding the use of explosives.

In order to conduct mining operations, an Environmental Exploitation Permit from the Ministry of the Environment is mandatory, in addition to the environmental obligations arising from the New Mining Code.

ii Environmental compliance​

Environmental compliance obligations exist at every stage of a mining project:

1. the holder of an exploration permit must apply for the approval of a mitigation and rehabilitation plan in which the measures taken to limit and remedy environmental damage caused by exploration work are described;
2. any person applying for an exploitation permit is required to submit an environmental impact study and a project environmental management plan, which must contain a description of the 'greenfield' ecosystem and of the measures envisaged to limit and remedy harm caused to the environment throughout the duration of the project; and
3. to be granted an environmental exploitation permit, the holder of a mining right is required to submit an environmental impact study and an environment management plan to the Ministry of the Environment for approval.9

As mentioned above, rehabilitation costs must be covered by a financial guarantee to be set up in accordance with the Mining Regulations.

iii Third-party rights​

Under the Mining Code, occupants of the land covered by a mining permit have a right to be indemnified when their activities (such as agriculture) are affected by a mining project, in accordance with the conditions set out in the New Mining Code.

Other rights include an obligation for the operator to consult with local authorities.

Additional provisions of the New Mining Code are intended to ensure the conservation of any archaeological findings that occur during the course of the project.

iv Additional considerations​

Generally speaking, the DRC's infrastructure is either outdated or non-existent. In order to develop and maintain activities and personnel, mining operators are therefore frequently required to participate in local development, for instance by funding roadworks, hospitals or schools.

This last paragraph might be what Zijin were contesting re AVZ’s lack of local development of roads, hospitals schools to date, however you would think this only applies once you have a mining licence, not merely an exploration permit to a tenement.

Thanks Bin, that’s the section alright, I couldn’t quite remember exactly what it said but it’s clear that the DRC Government will be getting 10% so there’s no issue on percentage affecting the ML as @Xerof said.

Good to clear up the little bits of information that you come across and then forget in amongst all the other information.

Thanks again Bin, it takes time effort collecting the facts and posting here and as in Foxy’s case it takes a toll (on us all).

As many here have said, it shouldn’t be the shareholders that have to do all the work when it comes to providing information

As far as the website being down, it’s a bit dodgy like a lot of the DRC websites but I got into it ok

 

[DiscoDanNZ]

I had heard about 4 months ago that the company had ordered long leads ; however I didn't think to much more about it as the financial reports since didn't seem to suggest deposits were paid out of AVZ accounts, as these items would generally have at least a 10-15% up front payment

That quick CR at the end of last year stated that part would be used to order (maybe pay deposits, I can't quite recall exactly) long lead items...

It clearly says for Chengtun Mining not AVZ . They mine copper in the DRC .

It also says it's for their lithium mine in Manono with 401mt at 1.63%

 

[Charbella]

That quick CR at the end of last year stated that part would be used to order (maybe pay deposits, I can't quite recall exactly) long lead items...


It also says it's for their lithium mine in Manono with 401mt at 1.63%

Nothing about Shengtun on CAMI portal

View attachment 20128

That quick CR at the end of last year stated that part would be used to order (maybe pay deposits, I can't quite recall exactly) long lead items...


It also says it's for their lithium mine in Manono with 401mt at 1.63%

Nothing about Shengtun on CAMI portal

View attachment 20128

Should be Chengtun Mining

 

[Samus]

One thing is for sure @Frank it's more 'days of our DRC lives'

 

[JAG]

 

[JAG]