Corruption

[Flight996]

14/04/2023
Frank Posted

If genuinely released by Zijin, maybe this mutually beneficial parasite club is starting to implode.

 

[MoneyBags1348]

18/04/2023
Carlos Posted

 

[MoneyBags1348]

18/04/2023
Carlos Posted

The document is CEM/DG/139/ckk/22. I don't have a copy of it and I don't remember seeing it. But this tweet from ACAJ explains what's in it.

Mr Inappropriate Replied
Thanks - found a reference here too.

L'ACAJ dit soutenir la COMINIERE SA dans sa démarche demandant à AVZ de lui fournir tous « les documents relatifs au financement du projet DATHCOM SA levé en bourses » - MINES.CD - Premier média congolais du secteur minier

L’association congolaise pour l’accès à la justice (ACAJ) dit soutenir la COMINIERE SA dans sa démarche demandant à AVZ de lui fournir tous « les documents relatifs au financement du projet DATHCOM SA levé en bourses ». C’est ce qu’a annoncé cette association sur son compte Twitter officiel ce...

mines.cd

Edit: the request looks like a pretext to create this exact scenario. i.e. make a spurious request, AVZ tell them to fuck off, and Comminiere pulls the rip-chord. Great.​

 

[MoneyBags1348]

18/04/2023
Sam Posted




1/4 #MANONO #LITHIUM To resolve the stalled situation, we propose to the Head of State, Félix #Tshisekesi with the exception of: - To create an ad hoc commission. - To nominate the head of ECOFIN for its presidency. - Participation of others
@Presidence_RDC
@YNdjoli

2/4 ministries linked to the project. - Involve $AVZ , COMINIERE, DATHOMIR, civil society, representatives of Tanganyika and customary chiefs of #Manono . OBJECTIVE : - Make Tabula Rasa of the management of COMINIERE, appointing new leaders (non-politicized).

3/4 - Discuss ongoing legal disputes. - Negotiate only with the legal components of DATHCOM, respecting the contract of the joint venture and international rules. - Decide on the sale of the 15% of the State to #ZIJIN and their recovery.

4/4 - Take back the 5% of the State from DATHOMIR. - Recover the 5% donated to MMCS. - Clarify the 15% AVZ/DATHOMIR conflict.

 

[MoneyBags1348]

Lithium Manono: US$200,000 for 2 mining squares in 2017 to COMFORCE/Jason Brewer, 2021 they go to ZIJIN/Katamba Mining!​

May 2, 2023
Kiki Kienge

By Kiki Kienge

Manon's lithium file is like a Chinese box, once you open the first one, it hides a second one and this one a third one, all of which keep secrets on contract files, share transfers, selling prices and others.

The DR Congo so far has not yet started the exploitation of one of the largest lithium deposits in the world, which should start normally this year, following the suspension of the DATHCOM exploitation permit by the Minister of Mines, Antoinette Nsamba Kalambayi .

At the moment the DATHCOM file, joint venture of COMINIERE with AVZ Minerals and DATHOMIR and that of the Sino-Congolese contract, seem to have taken over all the mining files in the media and even for the Congolese authorities.
But COMINIERE having signed several joint venture contracts with other partners on mining squares containing lithium, today we wanted to analyze the one with the company, Force Commodities RDC.
Force Commodities RDC, which was headquartered at the time of signing the contract with COMINIERE in the Crow Tower building at the intersection of Boulevard du 30 juin and Batetela in the commune of Gombe, is a company owned by the Australian, Jason Brewer which notably owns other companies involved in the development and development of mining projects in Africa.

On November 11, 2017 COMINIERE, a Congolese State company, signs a joint venture contract with Force Commodities RDC, the same contract will be certified at the commercial court on October 16, 2020 as you will see in the photo. From this agreement came COMFORCE, a joint venture between the two companies with a capital of US$100,000 for 1,000 shares, distributed as follows.

• COMINIERE: 30%
• Strength Commodities: 70%

For two mining perimeters, No. PR12453 and No. PE13247 for an area of at least 400 square kilometers, Force Commodities only paid the modest sum of US$200,000, which was paid as a result;

• US$50,000 at the date of signing.
• US$150,000 in three installments of US$50,000 every three months from the date of signing the contract.

Force Commodities had the mission to study and identify a good technology to process Lithium, Niobium, Tantalum, Wolframite and Tin in its two perimeters. In November 2018 Force Commodities had even applied for the transformation of an exploration permit for its Kitotolo-Katamba lithium project in Tanganyika into a mining permit for 30 years at the Ministry of Mines.
But here in August 2021, the Chinese mining giant, ZIJIN signed a cooperation agreement with COMINIERE for two perimeters; the first is that of Force Commodities, the PR12453 and the second the "PE13427" according to the site of the ZIJIN group, thus creating Katamba Mining joint venture between ZIJIN and COMINIERE.

Strangely enough, on the list of COMINIERE partnerships, there is no permit that does not correspond to the number 13427, but there is indeed a mining square with the number 13247 on the list, which oddly is the one that belongs in particular to Force Commoditie in the contract signed with COMINIERE!

• Is it the same permit?
• How much were they valued at the time of sale by COMINIERE?
• Who was the seller, COMINIERE or Force Commodities?
• How much are the two mining squares worth today?

To conclude, in order to fully understand the situation, let's try to make a small comparison between two COMINIERE joint-venture agreements:

• In 2017, the Australians of AVZ Minerals for a purchase of 60% of the shares of DATHCOM from DATHOMIR, they had to pay 6,000,000 $US to COMINIERE and 750,000 $US to DATHOMIR, to then spend 75 million $US for the feasibility study and initial work in Manono.
• In 2017, Force Commodities paid US$200,000 to own 70% of the two licenses in Manono, to achieve nothing so far.

To get an idea of the evolution of the price of the shares of the lithium joint ventures of Manono, 1% of that of DATHCOM is worth no less than 10,000,000 $US currently.

QUESTIONING

• Why this feeling of disinterestedness of the Congolese authorities on its two perimeters which contain lithium and Katamba Mining of which the DR Congo owns 30%?
• If ZIJIN is a shareholder of Katamba Mining with 70%, in order not to invest in the two mining squares for the exploitation of lithium, what to insist on the 15% of DATHCOM?
• How did ZIJIN come into possession of the 70% of Katamba Mining and how much did he pay?

Archives des Economie - Kongo Presse

kongopress.com

 

[Xerof]

I can help Kiki out with any confusion over the 13427/13247 debacle - it was a typo in Zijin's Annual Report, which I have pointed out in the many discussions surrounding these transactions. What was of real interest at the time was Zijin mentioned another shareholding in Manono, 15% but didn't say which one of course, as they knew it was under the table, illegal, spurious and they are a bunch of cunts

Kunt

and welcome back bags

 

[MoneyBags1348]

Ass. National: the Minister of the Portfolio and the CEO of the SNCC targeted by an oral question with debate (Document)!

La ministre d’État, ministre du Portefeuille, Adèle Kayinda.

The national deputy Alphonse Ngoyi Kasanji transmitted to the office of the National Assembly an oral question with debate addressed to the Minister of State, Minister of the Portfolio, Adèle Kayinda and to the Director General of the National Railway Company of Congo (SNCC ).

Through this initiative, this national deputy wants to hear the minister's explanations on "the disbursement of budgeted credits for the Bakwanga Mining Company", he wrote in a tweet.

To the Director General of the SNCC, to enlighten the plenary on the blocking of several wagons of goods destined for the Grand Kasaï area, “thus promoting the vertiginous increase of these on the markets and the risks of expiry of their contents ", he added.

In addition, this former governor of the province of Kasaï-Oriental asks the office of the National Assembly to give it a particular interest.

mediacongo

 

[MoneyBags1348]

09/05/2023
Frank Posted

Jules Alingete slams politicians obsessed with “unpunished illicit enrichment”

On Twitter, the policeman of public finances, Jules Alingete has attracted many supporters for the evocation of his thesis according to which “unpunished illicit enrichment is an obstacle to the development of Africa”.

His messages pierce all currents and mobilize opinion against the impunity granted to embezzlers of public funds.

With each of his posts on Twitter, a lot of support is expressed.

Congolese line up behind his fight.

“We encourage any action aimed at exposing the gravediggers of our fragile economy.

If you keep digging, you will have other surprises even more shocking than the ones we have just experienced”, wrote Gabriel Nyangwile.

And the lawyer Lompempe Jeannot to add that: “the major obstacle to the development of African countries is corruption and embezzlement.

The two scourges plague States, but with the unwavering will of all of us, it is possible”.

The spite of Jules Alingete must challenge society.

The inversion of values constitutes a brake for the take-off of the black continent.

It is unthinkable that crooked politicians, chief embezzlers of public funds, pretend to be givers of lessons in good governance.

Without mincing words, the Inspector General of Finance recalls that "the practice of lying, deception, treason, unpunished illicit enrichment, the primacy of mediocrity over excellence having taken up residence in politics Africa, remains an obstacle to any development”.

If he disapproves of the bad apples' impulse to persist in evil, Alingete, on the contrary, praises the politicians who openly oppose these degrading practices. “Politicians who engage in the fight against these anti-values are to be congratulated“, he recalled.

Jules Alingete is today an icon in Africa, a model, a reference in the fight against corruption.

Unfortunately, tough-skinned politicians refuse, despite constant advice, to convert to serve the community.

Selfish, petty, they only defend their own interests to the detriment of the population they falsely claim to defend.

Solid safeguards have taken shape in the DRC.

Behind Alingete, a wall is gradually being built that will block all forms of corruption and prevent any embezzlement of public funds.

 

[MoneyBags1348]

15/05/2023

RDC : Jules Alingete promet la prison aux ministres et mandataires publics détourneurs des fonds de l’État

La première livraison de l’émission « Tribune populaire pour les décideurs », produite le vendredi 12 mai 2023, au studio C de la Radio télévision nationale congolaise (RTNC), a reçu l’Inspecteur chef des services de l’Inspection générale des finances (IGF), Jules Alingete. Intervenant en...

rtnc.cd

 

[MoneyBags1348]

 

[MoneyBags1348]

The following is a free English translation of the original General Inspectorate of Finance Report published on 30th November 2022 in French and available online at https://igf.gouv.cd/rapports

DEMOCRATIC REPUBLIC OF THE CONGO
PRESIDENCY OF THE REPUBLIC
GENERALINSPECTORATE OFFINANCE
SUMMARY REPORT OF THE GENERAL INSPECTORATE OF FINANCE ON THE MANAGEMENT OF MINING ASSETS IN THE DRC BY THE PUBLIC ENTERPRISE
LA COMINIERE S.A
September 2022

I. GENERAL SUMMARY REPORT OF THE MISSION TO MONITOR THE TRANSFER OF SHARES OF COMINIERE S.A.
IN DATHCOM MINING SA

II. La Congolaise de l'Exploitation Minière, abbreviated La COMINIERE S.A., is a commercial company under Congolese law, formerly called ZAÏRETAIN, whose entire shares belong to the Congolese State.
It has benefited with 40 mining titles from the Congolese State since its creation. To date, it holds only two (2). 37 mining titles have already been transferred to various private partners and one title is leased to CHEMAF.

Among the 37 mining titles transferred, 6 mining titles relating to LITHIUM deposits were sold in a joint venture called DATHCOM MINING with the Australian and Chinese private companies.

At the creation of DATHCOM MINING, the shares were distributed as follows in spite of the fact that it was COMINIERE S.A. which contributed with LITHIUM deposits and other minerals, while DATHOMIR was to provide the financing:

- 70% DATHOMIR MINING SARL ;
- 30% COMINIERE S.A.

HIGHLIGHTS

II.1. MANAGEMENT OF THE COMINIERE AT ODDS WITH ITS CORPORATE PURPOSE

a)Substitutionofthecorporatepurposeofmining,whichcreateshigh added value, for that of simple equity investment activities in mixed companies through definitive and irrevocable transfers of mining titles.

The corporate purpose of La COMINIERE S.A. as defined in its Article of Association is "to carry out all operations of studies, prospection, research and mining of cassiterite, coltan, tin etc. ".

However, a practice has been established in the General Management of COMINIERE SA (in violation of its Articles of Association), that of simple participation activities in mixed companies in return for definitive and irrevocable transfers of mining titles, in exchange for minority participations of a maximum of 30% in the social capital of these joint ventures and 70% of the participations attributed to the other partners, even though they have not presented any financial guarantee.

It is a real sell-off of the mining heritage of the State. The External Partners now definitively and irrevocably own more than 90% of the mining assets of COMINIERE S.A.

b) Irrational transfer of mineral rights without any prior evaluation, but in a definitive and irrevocable manner.
Abusive, systematic and irrational transfers of mining rights of the Congolese State without any prior evaluation have been noted, in exchange for a maximum of 30% of shares in the joint-ventures. The General Management of COMINIERE S.A. justifies these transfers by the lack of financial means, including State subsidies, as well as by the need for their survival.

Even though the Mining Code dedicates the final and irrevocable transfer of mining titles in its Chapter II, Articles 182 to 185, final and irrevocable transfers of mining perimeters not preceded by a prior evaluation are acts of sell-off that cannot be justified by the absence of state subsidies, let alone by the need for survival.

In the absence of any means of valuing mining titles before they are brought into the joint-ventures, a definitive and irrevocable transfer with a clause on the redistribution of the shares in the event of a valuation of the mining titles can be legally justified, which is not the case with the General Management of COMINIERE S.A., who establishes definitive and irrevocable transfers of non-valued mining perimeters without any precautions.

c) Policy of Sale of mining titles motivated by the survival and not the enrichment of the State.

The investigations of the Monitoring Team have led to a contradictory finding of the absence of economic, financial and social repercussions of this policy of definitive and irrevocable transfers of the State's mining rights on the enrichment of the Congolese State, and that COMINIERE S.A is content to concern itself with the survival and not the enrichment of the Congolese State, owner of the mineral resources.

d) Transfer of Exploration Permits without payment of the transfer price to COMINIERE S.A

The Exploration Permits are transferred to the partners without payment of the transfer price to COMINIERE S.A., with no reaction from the General Manager a.i. of COMINIERE S.A., despite the fact that the transfer contract clearly provides for payment of a transfer price.

II.2. ALLOCATION OF JUICY SHARES IN JOINT VENTURES TO EXTERNAL PARTNERS WITHOUT ANY GUARANTEE OF SUBSEQUENT FINANCIAL CONTRIBUTIONS

DATHCOM Mining S.A. was initially created in partnership with DATHOMIR Mining Ressources on 17 October 2016. Its false promises of financing earned the latter the allocation of 70% of the shares, while COMINIERE S.A., which definitively and irrevocably transferred the mining titles, was satisfied with 30% of the shares. No proof of financing guarantees provided by its partner was given to the Monitoring team.

As if the 70% was not enough to mobilise the financing, DATHOMIR Mining Ressources was allocated a further 5% of the shares in COMINIERE SA on the grounds that a sister company of DATHOMIR had built the MANONO - PWETO road without being paid by the Congolese state. COMINIERE S.A. retained only 25%.

Despite holding 75% of the shares, the partner DATHOMIR was not, in spite of everything, able to mobilise the expected financing, but preferred, only two months after having benefited from the transfer of 5% of the shares of COMINIERE S.A., to sell 60% of the shares to AVZ International in violation of the provisions of the joint venture contract in its article 16 point (f) concerning its commitments and according to which, it could not transfer its shares before the date of the commercial production.

There is a clear need to note that the SPECULATION that has taken up residence in the mining sector which consists of taking Congolese mining titles for unfulfilled promises of financing.

Through this operation, DATHOMIR has made enormous profits without having paid a single penny in the partnership concluded with COMINIERE S.A.

II.3. SUCCESSIVE TRANSFERS OF THE SHARES OF COMINIERE S.A IN DATHCOM MINING S.A. IN VIOLATION OF THE LEGAL PROVISIONS ON THE DISENGAGEMENT OF THE STATE FROM PORTFOLIO COMPANIES
Law No. 08/008 of 7 July 2008 laying down general provisions relating to the withdrawal of the State from companies in the Portfolio defines in Article 2, point b, the State portfolio company as any company in which the State or any other legal person governed by public law holds the entire share capital or a stake.
In the light of the above, Article 3 of the aforementioned Act subjects the divestment to strict prerequisites, including the following:
- the valuation of the assets of the company concerned and the modalities of its valuation;
- the safeguarding of the State’s interests by seeking the most advantageous conditions;
- the diversification and profitability of the State's portfolio in the medium and long term by taking advantage of the opportunities offered by the market.

By proceeding to successive transfers of shares, the prerequisites for the State’s disengagement have not been respected at all.

In addition, article 7 of the above-mentioned law stipulates that the transfer of assets, shares or stocks or the transfer of management of a State portfolio company shall be carried out, as the case may be, according to one of the following techniques:
- a general or restricted invitation to tender;
- the use of private treaty market as an exceptional measure, in accordance
with Article 20 of the same Act;
- a transfer to employees or the public.
All these violations have been authorised by the Ministry of Portfolio.
From a legal point of view, the responsibility of the management of COMINIERE S.A. as well as that of the Ministry of the Portfolio are accountable.

II.4. ABUSIVE FIXING AND TO THE DETRIMENT OF THE PUBLIC TREASURY OF THE VALUE OF TRANSFER OF THE 15% OF THE SHARES OF COMINIERE S.A. IN THE CAPITAL OF DATHCOM MINING SA, TO THE BENEFIT OF THE COMPANY ZIJIN MINING
On the grounds of obtaining means for exploitation, COMINIERE S.A. sold another 15% of its 25% shares in DATHCOM Mining to ZIJING MINING.

The following irregularities were noted as follows:
a) Encroachment of the prerogatives of the Government's technical body in the choice of independent experts in charge of the valuation of the 15% of the divested shares.

Article 11 of the above-mentioned law on divestment provides that the task of valuing the assets falls within the competence of independent experts under the responsibility of the Government's technical body, which is COPIREP.
COMINIERE S.A., in its planning of the sell-off of mining assets, has arrogated to itself the prerogatives of the Government's technical body to arbitrarily and hastily choose two consultants, in this case an association of mining and quarrying agents without a tax number and ALPHA BUSINESS COMPANY to carry out the same evaluation, whereas a definitive feasibility study of the LITHIUM deposits project was already at its disposal.

b) Market value of COMINIERE SA's 15% of shares in DATHCOM Mining sold to ZIJIN Mining.

While the final feasibility study of the LITHIUM-only deposit project had communicated its results according to which the 100% of DATHCOM's shares were worth USD 1,028,000,000 and that the 15% of COMINIERE's shares were already worth USD 154,200,000, these (15% of the shares) were sold to ZIJING MINING for the derisory amount of USD 33,440,000, resulting in a loss of revenue of USD 120,760,000.

This sale engages the responsibility of the management of COMINIERE and the Ministry of the Portfolio which had given the authorisation.

c) Use of USD 33,440,000 of the proceeds from the sale of COMINIERE's 15% shares in DATHCOM

While the fundamental reason given for selling this 15% of the shares was to improve COMINIERE's operations, it was found that the amount of USD 33,440,000 was squandered as follows:
• 5% of the transfer price, i.e., USD 1,672,000.00 paid to FOCUS PLAIDOIRIE as commissions and fees;
•5%ofthetransferprice,i.e.,USD1,672,000.00paidtothemembers of the Board of Directors as exceptional remuneration;
• USD 700,000.00 paid to the two consultants who produced complacency studies on the basis of a price dumping for the transfer of the 15% of the shares was carried out;
• USD 770,662.00 for remuneration of staff, agents and statutory auditors ;

• USD 1.394,198.00 cash supplies for various expenses not audited by the Monitoring Team.

Nothing has been allocated to the operation of COMINIERE S.A to date and the account is almost empty.

II.5. ILLEGAL TRANSFERS OF MINING TITLES BY ASSIGNEES TO THE DETRIMENT OF COMINIERE SA
The contractual provisions prohibit the transfer of mining titles that constitute the contribution of COMINIERE S.A in DATHCOM Mining. The investigations of the Monitoring Team have led to a contradictory finding of illegal transfers of the following mining titles:
• The PE (Operating Permit) 12436 that COMINIERE S.A transferred on 07/12/2017 to DATHCOM Mining for exploitation was transferred by the latter on 07/12/2018 to HONGKONG YISEN which, in turn, transferred it on 17/05/2019 to HONGKONG EXCELLEN MINING INVESTMENT CONGO SARL;
• PE 12449 that COMINIERE S.A transferred on 07/12/2017 to DATHCOM Mining SA was transferred on 07/12/2018 by the latter to HONGKONG YISEN;
• The PE 12450 that COMINIERE S.A transferred on 07/06/2017 to DATHCOM Mining SA was transferred by the latter to HONGKONG EXCELLEN MINING INVESTMENT CONGO SARL.

Having been made in violation of the contractual provisions, these transfers are indeed illegal and to the detriment of the interests of COMINIERE S.A.

Indeed, the transfer of the Research Permits must give rise to the payment of the transfer price in favour of COMINIERE S.A and in addition, their transformation into an Operating Permit must also give rise to the payment of Key Money in favour of COMINIERE S.A. The Monitoring Team has not traced any of these revenues.

III. CONCLUSION
The General Inspectorate of Finance concludes that COMINIERE S.A. mining assets were intentionally sold off by its management team with the participation of the Ministry of the Portfolio.

Kinshasa, 30 November 2022
GENERAL INSPECTORATE OF FINANCE

 

[MoneyBags1348]

15/05/2023
Carlos Posted

Zijin paid a $5m USD deposit of the total $33.4m USD acquisition value with the remaining $28.4m USD to be paid within 30 days of the transaction being completed. That's without CKK's snacks fee of $2m and rumours of other payments.

To my knowledge only the deposit of $5m has been paid so far. Which indicates to me that Zijin don't consider the purported transaction complete.

The IGF report details around $6m USD in squandered amounts and alleges that nothing was attributed to Cominiere. So it would appear more than $5m USD was paid at least. But the $6m detailed by the IGF is a lot closer to the deposit amount than the full amount. I vaguely remember an amount of around $6.8m USD appearing in one of Zijin's reports at one point but can't find it.

Is it possible that Zijin paid a deposit and the balance was put into escrow with the full amount recorded for accounting purposes?

Happy to be corrected here if anyone can prove that Zijin paid the full amount of $33.4m USD. Especially happy to be corrected if anyone can prove they paid the $35.4m USD inclusive of $2m snacks discussed between Zijin and CKK in the recording haha

 

[MoneyBags1348]

Zijin were exposed fraudulently conspiring with Cominiere to extort ownership away from AVZ in the Dathcom Manono project by the IGF

A few months later Zijin tries to blackmail Cominiere into giving them the northern part of the project tenement (Page 7 of this thread…. The Black Hand of Zijin)

Cominiere and Zijin have another joint venture called Katamba Mining on the periphery of Manono but they don’t seem to know whether it’s a gold or lithium tenement


9Cardomaha Posted
The ramifications (of the Zijin + Cominiere ICC case) would be that the Zijin + Cominiere ICC case isn't instantly thrown out since it was lodged before the injunction (ie the AVZ Emergency Proceedings lodged with the ICC)

My thinking on the timing is that AVZ tried to have the ICC just throw the case out with the Emergency Proceedings, or at least suspend it until AVZ v Cominiere is finalized (we announced April 17).

So the new timeline of events in terms of the ICC could be:

1. Zijin vs AVZ - July Jurisdiction Hearing, August verdict
2. AVZ vs Cominiere - Preliminary steps, selecting arbitrators, document discovery, timeline setting for proceedings (September)
3. Zijin/Cominiere vs AVZ - Suspended until further notice
   • 3 can only go forward if 1 rules in Zijin's favour and;
   • if 2 rules in Cominiere's favour (but the final verdict for this should be in like 2024-2025)

Someone peer review this for me?

 

[Xerof]

https://kongopress.com/2023/05/16/z...59est-du-lithium-contre-les-33-4-millions-us/

ZIJIN à la COMINIERE sur les 15% de DATHCOM ; « Permis 13359EST du lithium contre les 33.4 millions $US » - Kongo Presse

Par Kiki Kienge Le 15 août 2022, Son Excellence Madame la Ministre d’État, Ministre du Portefeuille, Adèle Kayinda a tenu une réunion avec ZIJIN Mining pour discuter du développement entre…

kongopress.com

Blackmail

 

[Xerof]

Manono Lithium : La COMINIERE inscrit ZIJIN au Registre de Commerce de DATHCOM malgré l'opposition d'AVZ - Kongo Presse

Par Kiki Kienge Toujours dans sa lettre d’imposition de ZIJIN à la COMINIERE (la Congolaise de l’exploitation minière), le groupe Chinois reconnaît au cours d’une Assemblée Générale Extraordinaire des partenaires…

kongopress.com

Fraud

 

[Dave Evans]

Cruiser

Manono Lithium: COMINIERE registers ZIJIN in the DATHCOM Trade Register despite AVZ's opposition

May 17, 2023
Kiki Kienge

Also in its ZIJIN tax letter to COMINIERE (the Congolese mining company), the Chinese group recognizes during an Extraordinary General Meeting of DATHCOM partners on November 20, 2021, the opposition of the AVZ Minerals group the sale of COMINIERE's 15% stake in DATHCOM and the refusal to see ZIJIN as a partner in the joint venture:

“Given that AVZ International Pty Ltd, which is the majority shareholder in DATHCOM, contested all the resolutions adopted during the Extraordinary General Meeting of November 20, 2021 of DATHCOM, thus abusing its majority, consequently the coordinated Articles of Association of DATHCOM, as amended by the resolutions of the General Meeting of November 20, 2021, have not yet been signed to date.
Can we read in ZIJIN's letter.

Now don't forget at this stage Zijin or its subsidiary wasn't part of the JV and AVZ held 75% and Cominière held 25%!

Ignoring AVZ Minerals' right of veto, COMINIERE proceeded with the registration in the Trade and Personal Property Credit Register of DATHCOM and the registration at the Single Window for Business Creation in Lubumbashi of JIN CHENG, a subsidiary of the ZIJIN group. who had acquired the 15% of COMINIERE:

“Given that the minutes of the aforementioned Extraordinary General Meeting were notarized, filed at the Single Window for Business Creation in Lubumbashi on November 23, 2021, and its resolutions were registered in the Register of Commerce and Credit Mobilier RCCM of the company DATHCOM. ZIJIN letter .

The ZIJIN group confirms the payment of the sum of US$33,400,000 for the purchase of the 15% share of its subsidiary JIN CHENG from COMINIERE and considers the holding of the Extraordinary General Meeting held on November 20, 2021, as a legalization of its subsidiary as a partner of DATHCOM:

"Since COMINIERE and JIN CHENG entered into a share transfer agreement on September 10, 2021 (the "Transfer Agreement"), according to which COMINIERE transferred to JIN CHENG the 15% of shares it held in the share capital of the company DATHCOM MINING SA (abbreviated DATHCOM), in return for this transfer, a payment of the amount of 33,440,000.00 USD (Thirty-three million four hundred and forty thousand US dollars) was made by JIN.CHENG on behalf of COMINIERE (the sale of 15% of shares). »

“Given that the Extraordinary General Meeting of DATHCOM held on November 20, 2021 approved this transaction for the sale of 15% of shares, thus materializing the quality of JIN CHENG as one of the shareholders of DATHCOM. »

 

[Dave Evans]

AVZ's response of 04/08/2021 to the COMINIERE's letter and opinion on the sale to ZIJIN of the 15%​

May 19, 2023
Kiki Kienge


The COMINIERE had already begun negotiations with the Chinese group, ZIJIN for the acquisition of 15% of its shares in DATHCOM not respecting the agreements of the Joint Venture, which obliges any partner in the event of the desire to sell its shares to make a proposal to other partners, in the event of refusal or a better proposal from a third party, the seller had not the right

The COMINIERE declares that it sent a newsletter to its partner AVZ, but by "error" had sent the letter to the parent company that is AVZ MINERALS that has its partner subsidiary in DATHCOM, AVZ INTERNATIONAL.

Despite AVZ's recommendations on the risks of transactions between ZIJIN and COMINIERE, the latter continued negotiations until selling 15% of its shares to the Chinese group, a sale deemed illegal by the IGF (Inspection General of Finance):

LETTER FROM AVZ:
To \ ATHANASE MWANBA Director General of COMINIERE SA in Lubumbashi. Date 04-08-2021 Place Kinshasa Reference C1/098/MMA/08/2021
Subject Your Correspondence with reference CEM/DG/051 /amm/2021 dated 2 1/07/2021 entitled; "Application for Acquisition by ZIJIN of the shares of COMINIERE SA in DATHCOM MINING SA"

Dear DG Athanase.
Mr. Director General.
After receiving your correspondence referenced > CEM/DG/amm/2021 dated 21/07/2021, the company AVZ MINERALS LID instructed me to urgently seize the object listed in the above.

Indeed, the correspondence cited above has received all the attention of my client AVZ MINERALS, in this case AVZ INTERNATIONAL although you have sent this correspondence to AVZ MINERALS.

Already the company AVZ MINERALS LTD, in the name and on behalf of its subsidiary "AVZ INTERNATIONAL, reiterates once again its interest in the purchase of the 15% of the shares
of the company COMINIERE in DATHCOM MINING SA in accordance with its correspondence referenced "20191002/NF/mb dated October 2, 2019 addressed to the Ministry of the Portfolio after agreement with yourself.

AVZ MINERALS notifies you at the same time of its desire to receive the benefit of the right of pre-emption which would like according to our statutes that the shares are first proposed and sold to
shareholders in the company but also this comes from the agreements made between parties in the 2017 Joint-Venture agreement.

Nevertheless, your correspondence calls for some comments and reminders as part of our privileged business relationships as described intra.

I. FACTS
1.1.1. We have acknowledged receipt of your letter with the reference number Ref:
CEM/DG/051 /amm/2021 dated 21/07/2021 with the title "Application for acquisition by ZiJIN of COMINIERE SA's actions in DATHCOM MINING #.

You informed us that you were informed by ZIJIN MINING GROUP COMPANY LIMITED through its correspondence dated June 13, 2021 in which the group indicated its intention to acquire, partially or totally, COMMINIERE SA's stakes in DATHCOM MINING SA.

You also informed us that you received the "green light from your board of directors, including a general meeting of COMINIERE to start negotiating with them what you had... And you also have a meeting with ZIJIN on July 14, 2021 during which ZIJIN expressed its willingness to acquire at least 15% of the project's capital. ”

II; REMINDERS
2.1.1. You would remember we offered to buy your own shares within DATHCOM, and you gave us the green light to discuss with the government of the DRC, what we did through the Ministry of the Portfolio, and we did so in the spirit of our Joint Venture agreement, in particular Articles 6 to 7.

2.1.2. Please note that on the basis of the same proposal of the joint venture agreement that is the law between the parties yourself and DATHOMIR you are committed to supporting the efforts of AVZ and DATHCOM MINING SA to carry out the fundraising and development of the Manono lithium project.

2.1.3 As part of the same agreement, you undertook to avoid doing anything that could undermine AVZ's efforts to raise funds and develop projects knowing that AVZ is a publicly traded company with an obligation to transparency and disclose any risk to the project.

2.1.4. Any transaction on the sale of shares between shareholders having discussions outside the company in violation of our OHADA corporate governance, our JV agreement and the statutes in its articles of association.

2.1.5. Having this meeting with ZIIN, including a board of directors without having a prior meeting within DATHCOM is in violation of the statutes of DATHCOM MINING SA, the Jouint-Venture agreement and OHADA law. Our statutes require you to start first with a discussion and proposal to sell the shares to other shareholders within. We think it would be an unfortunate oversight of our own agreements and you are bringing things back into the rules by continuing the negotiations started with "VZ MINERALS LTD".

2.1.6. Continuing discussions with ZIJIN would risk affecting the PR13359 conversation into an export license because CAMI is currently examining the shareholding structure based on the information we have transmitted. Such a transaction would thus risk reducing AVZ MINERALS' efforts to raise funds in accordance with the promises made under Articles 7 to 9 of the Joint Venture Agreement signed in 2017. We think that when you realize the consequences of such an impact on the project and the difficulties that it could, you will resume discussions with AVZ MINERALS based on a long business relationship.

2.1.7. In addition, please note that if you have a transaction with third parties for the purchase of 15% of your shares, it does not mean that you are leaving the company because you have committed to give 10% of your capital to the DRC government on the basis of the JV agreement and the Mining Code.

2.1.8. Any transaction with a third party during our mining export permit application process will be considered suspicious by the government while we have submitted our shareholding structure.

Our offer

3.1.1. Based on the reasons and legal reasons mentioned below, AVZ always has exclusive rights based on our business relationships and our 2017 Joint Venture agreement.

3.1.2. We are still interested in buying exclusively 15% of your shares as previously expressed, which will include an annual advance and an amount
agreed.

3.1.3, We invite you, in the spirit of our peaceful and profitable business relations to all to respect our statutes, the provisions of our Joint Venture agreement, to abandon this negotiation process with ZIJIN, to return to the negotiating table in compliance with our right of pre-emption.

On behalf of AVZ MINERALS AVZ MINERALS (On behalf of AVZ INTERNATIONAL (PTY) Ltd)
Me Crhistian Lukusa, Esq
Attomeys at Law/ Lawyer at the Court
Momentum Affomeys & Advisor

 

[Dave Evans]

AVZ goes to arbitration in the USA against DR Congo for blocking Manono's lithium license

June 10, 2023
By Kiki Kienge

To ask the question of why the blocking of DATHCOM's operating permit 13359 by the Congolese government, expecting a clear rest, is the hope of being able to touch the horizon one day.

Manono's lithium has caused a lot of ink to flow in the national and international media, a media and political roller coaster, which has always given us thrills.

In short, the Congolese government officially embarked on the adventure of exploiting this mineral, which is no longer a mineral of the future, but a wealth of the present, in 2013 with the creation of MANOMIN a joint venture between the Congolese State and MMCS, a group in the right of Mauritius, whose true names owners remain a mystery.

After the cancellation of MANOMIN due to the financial incapacity and expertise of MMCS, the DATHCOM joint venture was created in 2016 between the Congolese State by COMINIERE and DATHOMIR belonging to the Chinese, Simon Cong with 70% for the Chinese and 30% for the DRC.

Unable to raise funds for the development of the lithium project as was the case with MMCS, DATHOMIR sold 60% of its shares in DATHCOM to the Australians of the AVZ MINERALS group in 2017.

AVZ MINERALS, unlike the first two, was able to bring in funds and carry out the feasibility study of Manono's lithium so that it is certified as one of the richest deposits in the world.

According to the agreement with the Congolese State, it changes the 13359 exploration permit into a 13359 operating permit to allow DATHCOM to exploit lithium, but here after the late and suspicious interest of the Chinese group ZIJIN on the Manono lithium project trying to illegally acquire (according to the IGF) 15% of the shares of COMINIERE, the Congolese Government through the Minister of MINES, Antoinette Nsamba Kalambayi, cancels DATCOM's operating permit because of COMINIERE's accusations against AVZ MINERAL.

Namely that following a series of financial maneuvers, COMINIERE which owned 25% of the shares of DATHCOM, all sold to remain with only 5% and in duty to hand over after 10% to the Congolese State, so remains in negative of -5%.

Following the refusal of the Congolese government to resolve the situation and sit down at the table with DATHCOM's partners to find a solution, AVZ MINERALS according to the joint venture agreements, on June 08 took the decision to resort to ICSID (International Centre for Settlement of Investment Disputes) arbitration for non-compliance with the Mining Code of DR Congo.

"ICSID is an international arbitration institution established in 1966 for the settlement of legal disputes and conciliation between international investors and states. ICSID is part of and financed by the World Bank Group, headquartered in Washington, D.C., United States. It is an autonomous specialized multilateral institution aimed at encouraging international investment flows and mitigating non-commercial risks through a treaty drafted by the Executive Directors of the International Bank for Reconstruction and Development and signed by member countries," of which Congo is a member.

MINERALS LIMITED

The main objective of the ICSID Request for Arbitration is to seek various remedies for the failure of the DRC and its administrative services to comply with obligations under the DRC Mining Code, in particular in the implementation of the various measures that should have led to the issuance of an operating permit to Dathcom under the Research Permit "PR 13359", for the development of the Manono Project.

The Plaintiffs argue that the direct consequence of this breach, which is not an isolated act, is the blocking of the development of the Manono Project.

As a result, the impact on Dathcom's principal asset and more generally, on the Applicants and the Company's investment, is severe.

ICSID COMPLIANCE

Case Details

AVZ International Pty Ltd., Dathcom Mining SA and Green Lithium Holdings Pte Ltd. v. Democratic Republic of Congo (ICSID Case No ARB/23/20)

Subject matter of the dispute: Mining concession

Economic sector: Oil, gas and mining

Instrument(s) invoked: Other

Applicable Rules: ICSID Convention – Arbitration Rules (a) Initial proceedings

Applicant(s)/Nationality(ies): Green Lithium Holdings Pte Ltd. (Singaporean), AVZ International Pty Ltd. (Australian), Dathcom Mining SA (Congolese (DR)

Respondent(s): Democratic Republic of the Congo (Congolese (DR))

Registration date: June 8, 2023

Party Representatives Applicant(s): DLA Piper, Paris, France and Madrid, Spain

Respondent(s): President of the Republic, Kinshasa, Democratic Republic of the Congo

Prime Minister, Kinshasa, Democratic Republic of Congo, Ministry of Mines, Kinshasa, Democratic Republic of Congo

Procedure Status: Pending

Last development: 8 June 2023 – The Secretary-General registers a request for the institution of an arbitration proceeding.

AVZ va en arbitrage aux USA contre la RD Congo pour le blocage du permis d'exploitation du lithium de Manono - Kongo Presse

L'objectif principal de la demande d'arbitrage CIRDI est de rechercher divers recours pour le manquement de la RDC et de ses services administratifs, à se conformer aux obligations dans le cadre du Code minier de la RDC

kongopress.com

 

[MoneyBags1348]

05/07/2023
Sam Posted
NEWSECONOMY

CATH, AVZ, USA, Zambia, is the Congolese government meddling in the lithium battery project?​

July 4, 2023
Kiki Kienge


By Kiki Kienge
Is the Congolese government meddling in the lithium battery manufacturing project in the DRC?

The Minister of Industry, Julien Paluku has just paid a visit to China to the facilities of the world's leading battery producer, the Chinese giant, CATH:

"Arrived this morning at the headquarters of CATL, the world's number one producer of electric batteries, the Congolese delegation that I lead toured the technological facilities to get a projection of the factory to be developed in #DRC after the conclusions of the DRC -AFRICA BUSINESS FORUM of Nov 2021. It took 24 years to get there since 1999 in order to provide other European, Asian and American giants with the electric batteries necessary for the energy transition. Julien Paluku.
Namely that the lithium from the DR Congo which must be used in the manufacture of batteries, is that of Manono in the province of Tanganyika, whose government through COMININIER is in joint venture (DATHCOM) with the Australians of AVZ MINERALS .
Following political cabals, the power of Kinshasa by its Ministry of Mines, decided to cancel the exploitation license of DATHCOM and would prefer to initiate a collaboration with the Chinese of ZIJIN on the exploitation of the lithium of Manono. In particular on new bases and a new joint venture, of which the Chinese of ZIJIN claim 71% and 29% to the Congolese.
Something that AVZ MINERALS does not accept, given the contract signed with COMINIERE in 2017 and plans to go to court against the DR Congo which wants to cancel the 75% of the shares of the DATHCOM joint venture of the Australians, without advancing any grounds that hurts the joint venture agreement.

Even the local community of Manono does not see favorably the arrival of the Chinese in the exploitation of its lithium, proof of the last outing of Mgr Vincent Kwanga , Catholic Bishop of Manono:

“blocking this process with AVZ, for us it means that we are not liked. If ZIJIN and COMINIERE file a complaint against AVZ, while we believe that it is rather AVZ that should file a complaint against our government, because they have signed agreements, that has not been respected and that can lead to judgments at the level of international trade. I don't know if our government is not going to spend billions of US dollars because of this contract that they have just broken unilaterally. »

The Chinese group CATH with its branch CATL, has a partnership agreement signed in 2021 with the Australians for the sale of 24% of the shares of AVZ MINERALS in DATHCOM at 24 million $US, for the development of the battery construction project in DR Congo with Zambia and the United States.

It makes you wonder, when the Congolese government asks CATH to support it in a lithium battery development project in Manono, is it unaware that CATH is collaborating on the same project with the Australians of AVZ MINERALS? whose contract he wants to break illegally?
What would be the strategy of the Chinese CATH, canceled the 24% agreement with AVZ and work with the Congolese government, or demanded from the Congolese government the participation of AVZ and to respect the contract of DATHCOM, of which he himself would own 24% by see it from the sale of Australian shares?

Good in all this politico-economic cacophony, the population of Manono awaits the development of the air province of Tanganyika and the jobs promised by the current power.

 

[MoneyBags1348]

05/07/2023
Sam Posted

Lithium Manono: US$200,000 for 2 mining squares in 2017 to COMFORCE/Jason Brewer, 2021 they go to ZIJIN/Katamba Mining!​

May 2, 2023
Kiki Kienge

By Kiki Kienge

Manon's lithium file is like a Chinese box, once you open the first one, it hides a second one and this one a third one, all of which keep secrets on contract files, share transfers, selling prices and others.
The DR Congo so far has not yet started the exploitation of one of the largest lithium deposits in the world, which should start normally this year, following the suspension of the DATHCOM exploitation permit by the Minister of Mines, Antoinette Nsamba Kalambayi .

At the moment the DATHCOM dossier, joint venture of COMINIERE with AVZ Minerals and DATHOMIR and that of the Sino-Congolese contract, seem to have taken over all the mining dossiers in the media and even for the Congolese authorities.
But COMINIERE having signed several joint venture contracts with other partners on mining squares containing lithium, today we wanted to analyze the one with the company, Force Commodities RDC.
Force Commodities RDC, which was headquartered at the time of signing the contract with COMINIERE in the Crow Tower building at the intersection of Boulevard du 30 juin and Batetela in the commune of Gombe, is a company owned by the Australian, Jason Brewer which would notably own other companies for the valuation and development of mining projects in Africa.

On November 11, 2017 COMINIERE, a Congolese State company, signs a joint venture contract with Force Commodities RDC, the same contract will be certified at the commercial court on October 16, 2020 as you will see in the photo. From this agreement came COMFORCE, a joint venture between the two companies with a capital of US$100,000 for 1,000 shares, distributed as follows.

• COMINIERE: 30%
• Strength Commodities: 70%

For two mining perimeters, No. PR12453 and No. PE13247 for an area of at least 400 square kilometers, Force Commodities only paid the modest sum of US$200,000, which was paid as a result;

• US$50,000 at the date of signing.
• US$150,000 in three installments of US$50,000 every three months from the date of signing the contract.

Force Commodities had the mission to study and identify a good technology to process Lithium, Niobium, Tantalum, Wolframite and Tin in its two perimeters. In November 2018 Force Commodities had even applied for the transformation of an exploration permit for its Kitotolo-Katamba lithium project in Tanganyika into a mining permit for 30 years at the Ministry of Mines.
But here in August 2021, the Chinese mining giant, ZIJIN signed a cooperation agreement with COMINIERE for two perimeters; the first is that of Force Commodities, the PR12453 and the second the "PE13427" according to the site of the ZIJIN group, thus creating Katamba Mining joint venture between ZIJIN and COMINIERE.

Strangely enough, on the list of COMINIERE partnerships, there is no permit that corresponds to the number 13427, but a mining square with the number 13247 exists on the list, which oddly is the one that belongs in particular to Force Commoditie in the contract signed with COMINIERE!

• Is it the same permit?
• How much were they valued at the time of sale by COMINIERE?
• Who was the seller, COMINIERE or Force Commodities?
• How much are the two mining squares worth today?

To conclude, in order to fully understand the situation, let's try to make a small comparison between two COMINIERE joint-venture agreements:

• In 2017, the Australians of AVZ Minerals for a purchase of 60% of the shares of DATHCOM from DATHOMIR, they had to pay 6,000,000 $US to COMINIERE and 750,000 $US to DATHOMIR, to then spend 75 million $US for the feasibility study and initial work in Manono.
• In 2017, Force Commodities paid US$200,000 to own 70% of the two licenses in Manono, to achieve nothing so far.

To get an idea of the evolution of the price of the shares of the lithium joint ventures of Manono, 1% of that of DATHCOM is worth no less than 10,000,000 $US currently.

QUESTIONING

• Why this feeling of disinterestedness of the Congolese authorities on its two perimeters which contain lithium and Katamba Mining of which the DR Congo owns 30%?
• If ZIJIN is a shareholder of Katamba Mining with 70%, why not invest in the two mining squares for the exploitation of lithium, rather than go after the 15% of DATHCOM?
• How did ZIJIN come into possession of the 70% of Katamba Mining and how much did he pay?