Frank
Top 20
If China controlled the Congolese lithium to the detriment of the Australians, a danger for the DRC-USA-Zambia battery project?
Now in DR Congo there is a war for the control of lithium in Manono in the province of Tanganyika, between the Australians of AVZ Minerals and the Chinese group Zijin.
The Manono lithium project is not new, since 2013 two groups with foreign capital have tried to start it, but the project has always remained at a standstill until 2017.
MMCS
In 2013, the MMCS group under Mauritian law with COMINIERE (La Congolaise d'Exploitation Miniere) a commercial company of the Congolese State, created a joint venture called MANOMIN, where the Mauritius company received almost 68 % of the Congolese State with conditions to bring back funds for the realization of a feasibility study on the lithium of Manono.
The remaining 32% of MANOMIN's shares belonged to COMINIERE.
Three years later, MMCS despite the 68% was never able to bring back the necessary capital for the feasibility studies or for the first works on the site, the Congolese State put an end to this collaboration canceling the permit 12202.
DATHOMIR
In 2016, another joint venture, DATHCOM was created between COMINIERE and the DATHOMIR group of the Chinese Simon Cong, almost on the same bases as MANOMIN, 70% for DATHOMIR and 30% for COMINIERE, which afterwards will have to yield 5% to the Simon Cong's group.
AVZ MINERALS
In 2017, DATHOMIR in difficulty to raise funds for the project, will appeal to the Australians of AVZ Minerals who will buy 60% of the shares of DATCOM from DATHOMIR.
The Australians finally managed to relaunch the lithium project, bringing back funds, five years later, to even carry out the feasibility study which will promote Congolese lithium on the international mineral market.
In 2022, DATHCOM's research permit 13359 was transformed into exploitation permit 13359 by the Ministry of Mines, but strangely blocked in the Mining Cadastre (CAMI).
In January 2023, the same Ministry of Mines canceled the exploitation permit 13359 following COMINIERE's accusations against the AVZ Minerals group in the management of the joint venture, DATCOM.
In the meantime, a whole series of legal actions is taking place in DATHCOM; MMCS against COMINIERE for 5% and AVZ with DATHCOM for 15% of the shares.
CHINA
Now the Chinese are also joining the lithium dance with the ZIJIN group, one of China's mining giants. ZIJIN will buy 15% from COMINIERE, a sale which will be deemed not to comply with the laws of the DR Congo by the General Inspectorate of Finance (IGF) in its report on COMINIERE.
The Chinese group, ZIJIN not wanting to say the last word, had proposed the retrocession of 15% in return for the southern zone of permit 13359.
It should be remembered that the ministerial decree which had canceled the operating permit 13359, had notably brought together the two zones, South and North of the permit.
Until today, the exploitation of the lithium of Manono remains blocked, nothing evolves except negotiations between the Australians and the Congolese State.
Many sector analysts even speak of a yellow hand that would try to splash the Australians of AVZ Minerals from the Manono lithium project, for the benefit of a Chinese lobby that swears by total control of one of the largest lithium deposits in the world.
USA/ZAMBIA/DRC BATTERIES
The DR Congo for its part has already invested in a gigantic project on the valorization of its ores, in particular lithium and cobalt with neighboring Zambia and the United States for the manufacture of lithium-ion batteries.
A Special Economic Zone (SEZ) is to be created in Haut Katanga on this project, the launch of the pre-feasibility study work was launched on April 27, 2023 by the Minister of Industry, Julien Paluku with representatives of the provinces involved in the lithium-ion battery manufacturing project.
In the mega project of lithium-ion batteries with the Americans and the Zambians, the Congo is almost the main player since it owns, in addition to cobalt and copper, lithium in Manono, the exploitation of which should begin this year in 2023 by the Australians of AVZ Minerals majority shareholder in DATHCOM, if there had not been the saga on the exploitation permit by the cadastre and the Minister of Mines.
The United States, which has good trade relations with Australia, has adopted a strategy with the Biden administration to try to rebalance the control of resources in Africa, which is mainly held by China.
Continue to sign memorandums of understanding with the DR Congo, particularly on the value chain of lithium electric vehicle batteries.
It is no longer a secret that the United States and China are at war for control of global resources, a very important position for economic and geopolitical supremacy in the world between the two giants.
In DR Congo, the country of Mao Zedong would control at least 60% of the minerals and no longer hides its ambitions to completely monopolize Congolese lithium.
"At the extreme, the end, that is to say the very realization of the project, gives way to the means: the end justifies the means and all means are good, it is success at all costs, without scruple, even at the expense of others".
Would have said André Comte-Sponville
Three questions should be asked about this reality of Congolese lithium and the economic war between the United States and China:
Imagine the hypothesis where China by a few magic tricks, manages to get its hands on the Congolese lithium, what would be the orientation of the mega project on the value chain of lithium batteries with the United States?
China, which is notably the leading producer of batteries in the world, something it wants to maintain at all costs.
This China, which has always had a strategy of sending raw materials or almost home, will it accept the processing of lithium ore on site in DR Congo than at home in China, up to the final product that will be used in the batteries?
What will the Congolese authorities do, negotiate with the Australians for the exploitation of lithium or cede Manono lithium to the Chinese and question the mega project on the battery value chain with the Americans?
Recall that in the third question, if it turns out that the Congolese authorities give in to the voracious appetite of the Chinese for Manono's lithium, endless legal proceedings will ensue against the DR Congo, which not only risks losing a lot of money, but in particular to further delay the exploitation of its lithium, thus jeopardizing the development of Tanganyika and the many jobs expected by the population of Manono.
Kiki Kienge - today 1, 2023
