Corruption

07/01/2023
Charbella Posted



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Stuck in Manono's lithium operation: Civil Society turns again to the Head of State​

January 5, 2023 TIGHANA MASIALA 0


In the lithium case of Manono, in the province of Tanganyika, a project led by the Dathcom joint venture, the civil society specializing in the extractive resources sector does not give up. For good reason, the great delay accumulated in the transformation of the Dathcom Research Permit into an Operating Permit, according to the requirements of the DRC Mining Code. With the stagnation that now characterizes this file, civil society organizations, gathered as part of a collective, launched a new arrest to the Head of State, Félix Tshisekedi Tshilombo, on December 22, 2023. Here is their entire correspondence, received by Econews.


Letter-PR05-Lithium-PE13359-Dec-2022Download

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07/01/2023
Charbella Posted



Embedded Article


Stuck in Manono's lithium operation: Civil Society turns again to the Head of State​

January 5, 2023 TIGHANA MASIALA 0


In the lithium case of Manono, in the province of Tanganyika, a project led by the Dathcom joint venture, the civil society specializing in the extractive resources sector does not give up. For good reason, the great delay accumulated in the transformation of the Dathcom Research Permit into an Operating Permit, according to the requirements of the DRC Mining Code. With the stagnation that now characterizes this file, civil society organizations, gathered as part of a collective, launched a new arrest to the Head of State, Félix Tshisekedi Tshilombo, on December 22, 2023. Here is their entire correspondence, received by Econews.


Letter-PR05-Lithium-PE13359-Dec-2022Download

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They may as well send a fucking letter to Santa.

Actually that would make sense - maybe the Green Witch and the CAMI fucker open all the Christmas letters. “No Johnny, you can’t have a fucking bike!”.
 
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23/01/2023

The development of the world-class Manono lithium mine in Congo (DRC) is imminent!Zijin Mining holds 15%​

2023-01-23 16:09 HKT

◎ Li Ping

Recently, Congo (DRC) Mining Minister Nsamba is about to sign a ministerial decree granting the Congo (DRC) Manono lithium mine mining license to Dathcom Mining Company. Zijin Mining acquired a 15% stake in the Manono Lithium Mine through the transfer of shares in the Congolese (DRC) National Mining Development Corporation (COMINIERE) .

The Manono Lithium Mine in Congo (DRC) is one of the largest lithium-rich LCT (lithium, cesium, tantalum) pegmatite deposits discovered in the world that can be developed in open pits. The JORC report updated in July 2021 shows that the total resources reach 401 million tons , the average grade of lithium oxide is 1.63%, equivalent to 16.32 million tons of lithium carbonate (LCE).
The Manono Lithium Mine in Congo (DRC) is one of the largest lithium-rich LCT (lithium, cesium, tantalum) pegmatite deposits discovered in the world that can be developed in open pits. The JORC report updated in July 2021 shows that the total resources reach 401 million tons , the average grade of lithium oxide is 1.63%, equivalent to 16.32 million tons of lithium carbonate (LCE).

The Manono lithium mine is 100% owned by Congo (DRC) Dathcom. Dathcom is a joint venture company established in 2016. After several supplementary agreements were signed, in 2017, Australian AVZ International, Congo (DRC) National Mining Development Corporation (COMINIERE) and Dathomir Mining Resources Co., Ltd. Resources SARL) holds 60%, 25% and 15% of the shares respectively.

Congo (DRC) is an important resource country of copper-cobalt ore and lithium ore in the world. Zijin Mining has successively invested and built the world-class Kamoa copper mine project and Kolwezi copper-cobalt mine project in Congo (DRC) since 2014. The cement and limestone industry extension project has played an important role in increasing the income of the Congo (DRC) country and eliminating poverty in the community, and has been highly recognized by the Congo (DRC) government and local communities. In view of Zijin Mining's outstanding performance in the construction and operation of the Congolese (DRC) project, the Congolese (DRC) state-owned mining company has increased its cooperation with Zijin Mining. Holding a 15% stake in Dathcom and signing an agreement to enable Jincheng Mining, a subsidiary of Zijin Mining, to obtain a 15% interest in the Manono Lithium Mine Project; at the same time, the two parties jointly established Catamba Mining Company to jointly develop PE12453 and PE13427 in the periphery of Manono Lithium Mine Two greenfield exploration and mining rights.

The investment representative of Zijin Mining said that the acquisition of 15% interest in Zijin Mining's Manono lithium mine can be described as twists and turns. In September 2021, under the premise of the approval of the Ministry of State-owned Assets of Congo (DRC), COMINIERE signed the Equity Transfer Agreement with Zijin Mining in compliance with the provisions of the right of first refusal, and Jincheng Mining, a subsidiary of Zijin Mining, acquired its holdings. Some 15% stake in the Manono lithium mine project. The transaction was obstructed by AVZ, the other party refused to convene the board of directors and shareholders meeting, and filed lawsuits to the court twice, forcing the transaction to proceed to judicial proceedings; in November 2021, the Congo (DRC) Lubumbashi Commercial Court rejected AVZ's application and presided over the meeting The shareholders' meeting approved the transfer of 15% equity of COMINIERE to Jincheng Mining, Jincheng Mining became the legal shareholder holding 15% equity of Dathcom Company, and completed the relevant business registration and change of movable property registration number (RCCM). Since then, AVZ has further objected and obstructed through multiple channels. In January 2022, the Brazilian Commercial Court of Luben once again rejected AVZ's request to revoke the relevant shareholders' meeting resolution and the changed RCCM.

The relevant person in charge of Zijin Mining said that as a responsible mining company, Zijin Mining has successful and rich experience in operation and management in the Congo (DRC), Africa. The participation of Zijin Mining will undoubtedly help accelerate the development of the Manono lithium mine. It is hoped that all shareholder units will strengthen communication and cooperation, abandon meaningless disputes, speed up project construction, and make due contributions to the economic and social development of Congo (Kinshasa) and the value enhancement of investors.

In response to the recent announcement by AVZ Company that Jincheng Mining's transfer of COMINIERE's equity was invalid, Zijin Mining's investment representative refuted that Zijin Mining strictly followed the company's articles of association during the process of equity transfer. Under the premise of harassment, actively follow judicial procedures and solve problems through litigation. In the future, the company will actively safeguard its own rights and interests, and use litigation, arbitration and other means to solve follow-up problems.

It is reported that the transfer of 15% of Dathcom's shares between Dathomir and AVZ was due to major flaws in the original transaction process. After Dathomir's application, the court ruled that the transaction has been terminated, and Dathomir ( Dathomir) still legally holds a 15% stake in Dathcom.

COMINIERE stated that the transfer of 15% shares of Dathcom Company between Zijin Mining and COMINIERE Company was reasonable, legal and compliant, and Zijin Mining was the legal shareholder holding 15% shares of Dathcom Company ; 10% stake in Dathcom. AVZ's transfer of 24% of Dathcom's shares still needs to go through relevant legal procedures. If the transfer is successful, AVZ's actual holding of Dathcom's shares will drop to 36%, and there is no absolute control.
 
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27/01/2023

Thanks sooo much for this information @Misfits



https://twitter.com/emil_jens
Jens Emil Soderlund
@emil_jens
Dec 7, 2022

$AVZ yesterday’s announcement, for clarification purposes, why referring to “60” as this was to “AVZ International” #IGF report #Datomir in violation of JV agreement #Cominiere #MOP #JinCheng #GuyLoando #Yisin #Excellen

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Jens Emil Soderlund
@emil_jens

$AVZ And here you have JFMK signing off on the illegal transfers #Yizin and HK #Excellen #Manono theft by Loando and crew

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@emil_jens
Dec 7, 2022

Replying to
@emil_jens
And the Hong Kong offshore company owners of both companies are #SimonCong #GuyLoando and #Cominiere And suspect JF, as well That Simon needs a Persona None Grata #Excellen articles of Association

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27/01/2023
Thanks again @Misfits


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06/02/2023


Manono lithium: two decrees of the Ministry of Mines that cancel in particular the conversion of the PR into PE, AVZ reacted

Manono lithium: two decrees of the Ministry of Mines that cancel in particular the conversion of the PR into PE, AVZ reacted​

February 6, 2023
Kiki Kienge

Manono's lithium project becomes like a television series of Novellas, every day we witness a new enigma, which in reality only delays the start of lithium exploitation in the Tanganyika province in Manono by the Australian company, AVZ Minerals, which owns 75% of Dathcom's shares. Dathcom being a Joint Venture between the Congolese State represented by the COMINIERE which should hold 25% of the shares, of which 15% were illegally transferred (according to the IGF which is the General Inspectorate of Finance of the DR Congo) to the Chinese of ZIJIN through the company Dathomir of the Chinese citizen, Simon Cong and 5% to MMCS a company registered in
On December 6, 2022, the COMINIERE requested the Ministry of Mines of DR Congo to postpone the judgments partially renouncing PR13359, which should block the procedure for transforming the research permit PE13359 into an operating permit PR13359 for Dathcom.
  • COMINIERE had considered that the transaction of the 60% of Dathomir's shares of Chinese Simon Cong with the Australians of AHV Minerals, had not complied with the joint venture agreements; "The terms around the transaction for the sale of 60% of shares of DATHOMIR and AVZ Minerals were never communicated to COMINIERE for it to exercise its right of pre This is why COMINIERE is right to question this transaction before the Authority, even until international arbitration. Had declared the lawyer of the COMINIERE.
  • In addition, COMINIERE accused AVZ Minerals of having put forward incorrect figures in the feasibility study presented to the Ministry of Mines on behalf of Dathcom; "Surbilling at the construction services level, the purchase price of factories for metallurgical treatment as presented in the feasibility study is more than ten times higher than the actual price. ”
  • In particular, COMINIERE demanded the possession of 100% of the Mpiana Mwanga hydroelectric power plant, of which AVZ Minerals by an agreement with the Ministry of Energy and Hydraulic Resources should be part of Manono's project; "Slapping the state's assets, declaring that thanks to a law firm, AVZ was able to recover the Mpiana Mwanga However, COMINIERE owns 100% of the power plant. ”
  • Overbilling by AVZ Minerals of some projects, AVZ said it has already spent US$70 million on the Manono project, the COMINIERE it talks about only US$2 million. Violation of subcontracts and other charges that had prompted the COMINIERE to refer the matter to the Minister of Mines.
Now in a tweet from the AACAJ ASBL (Congolese Association for Access to Justice), we discover that on January 28, 2023 the Ministry of Mines of DR Congo signed two judgments on the granting of the operating permit PE13359:

"The ACJ congratulates the Minister of Mines for having signed orders Nos. 00031 and 00032 dated 28/01/23 reporting orders Nos. 00147 and 00080 respectively granting operating permit No. 133359 to DATHCOM Mining SA and taking note of its partial waiver of research permit No. 13359. It is a courageous decision that allows the Crown company COMINIERE SA to recover all of its rights to Manono's lithium concession. The ACJ reiterates its request to the Government for a re-visit of the DATHCOM contract.Signed by Kapiamba Georges, representing the ACJ.

ACHA declares that it supports COMINIERE SA in this approach against AVZ Minerals, claiming that AHV has never communicated within 90 days, all documents relating to the financing of the DATHCOM SA project raised in scholarships, according to letter No. CEM/DG/139/ckk/22 of 7.12.22 of COMINIERE.

Note that at the moment we do not have any official statement from the ministry on the decrees, through me our drafting of Kongopress wrote to the ministry for more details on the decrees. Here is the answer received:

"Hello Kiki Kienge, We have received your message. We will contact you as soon as possible. Thank you for your patience. » Ministry of Mines DR Congo.

These decrees from the Ministry of Mines of DR Congo would call into question AHV Minerals' shareholdings in Dathcom, which still risks prolonging the start of Manono's lithium operation in other legal proceedings.

Now the Australian company, AVZ Minerals, has just reacted in a statement today, February 6, 2023, which would confirm the existence of the decrees of the Ministry of Mines despite the absence of an official announcement:

"AVZ Minerals Limited (ASX: AVZ, OTC: AZZVF) (AVZ company) refers to its announcement of May 4, 2022 confirming the ministerial decree of the Minister of Mines (MdM) of the Democratic Republic of Congo (DRC), to award the mining permit for the Manono lithium and tin project (Mano's project) to Da

As indicated by the company at the time of this announcement, the ministerial decree excluded a northern part of the PR13359 covering about a third of the entire permit, which under the DRC Mining Act, would be renewed in the form of a new 5-year Research Permit (PR) in Dathcom.

Subsequently, the company had prolonged discussions with the competent authorities of the DRC about a series of problems related to mining, which led to the Mining Cadastre (CAMI) delayed the issuance of the surface duty invoice to Dathcom, thus preventing the completion of the process of converting the research permit into a mining permit.

The company has now received notices that the DRC Ministry of Mines has issued two additional ministerial decrees, dated January 28, 2023, concerning the Manono project permit.

Which have the effect of:

1. The annulment of the ministerial decree that recognized a declaration of partial waiver of PR13359 by Dathcom, i.e. the northern part that was not covered by the ministerial decree to convert the PR into an operating permit (PE or Mining License).

2. The annulment of the ministerial decree that converted the southern part of permit 13359 from a PR to an EP or Mining Permit.

AVZ notes that the aforementioned ministerial decree recognizes:
  • The requirement for harmonious and healthy cooperation between Dathcom shareholders as a prerequisite for the progress of the development of the Manono project.
  • The ongoing disagreements, conflicts and divergences between shareholders who blocked the development of the Manono project and the resulting impasse prevent the Congolese State from benefiting from the development of the EP 13359.
The company seeks independent legal advice on the two ministerial decrees adopted on 28 January 2023, while accelerating discussions to clarify the intentions of the competent authorities of the DRC.

Words of the CEO of AHV, Mr. Nigel Ferguson:

The company apologizes for the continuous frustration felt by the shareholders and our main investor, who remains committed and willing to accelerate the financing needed to launch the development of the Manono lithium project. The potential economic, social and environmental benefits for the inhabitants of Manono, the DRC and Africa are enormous and will last generations are enormous and will last generations. Nothing will deter the board of directors and I from seeking a fair result for our shareholders, which my executive team works tirelessly. We will provide a new update to shareholders as soon as we are able to do so. ”

We already apologize for the possible errors that may be found in the translation of the press release.
 
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07/02/2023


Does the stoppage of the Ministry of Mines block the start of lithium exploitation condemning the development of Manono?

Does the stoppage of the Ministry of Mines block the start of lithium exploitation condemning the development of Manono?​

February 7, 2023
Kiki Kienge

Should we expect a new Judicial Saga in the TeleNovelas on Manono's lithium? Who would benefit, the COMINIERE, the Australians of AVZ Minerals, the "Maurians" of MMCS or the Chinese of ZIJIN?

What is certain is the population of Manono and Tanganyika in particular, in general all the Congolese people who still have to take their pain in patience to see the effective exploitation of its lithium which should further boost the economy of this country of Lumumba.

With this ministerial judgment granted by the Minister of Mines of DR Congo, courts and tribunals may be the next Congolese lithium operating ground.

Ministerial judgment No. 00031 mine cases /01/2025 OF 28 JAN 2023, would in fact block the first Ministerial judgment No. 00145/CAB.MIN/MINES/01/2022 of 22 April 2022 granting the Operating Permit 13359 to DATHCOM MINING SA.

This is following an appeal by COMINIERE (La Congolaise d'exploitation minière) of December 07, 2022 (letter reference: CEM/DG/138/ckk/2022), which is in particular a shareholder in the joint venture DATHCOM MINING SA with 25% of the shares, 15% and 5% sold illegally (according to the IGF), respectively to the Chinese group Z

The COMINIERE in the letter of its appeal declares that it is aggrieved by its Australian partner AVZ Minerals, accusing it of a lack of harmony and cooperation, overbilling and advancing incorrect figures. In particular, to want to illegally take possession of the Mpiana Mwanga hydroelectric power plant, which is owned by COMINIERE... Moreover, COMINIERE considers the sale of 60% of DATHOMIR's shares to AVZ Minerals to be null and void for non-communication of information between shareholders under the joint venture contract.

Given the millions of US dollars already spent on the Manono project by AVZ Minerals, which speaks of more or less 100 million US dollars, this decision by the Minister of Mines, Antoinette N'samba Kalambayi only opens a judicial series that will only further delay the exploitation of lithium in Tanganyika, whose population of Manono is impatiently waiting for its development.

In its latest report, the global lithium giant AVZ Minerals for its part states and confirms:
  • AVZ has confirmed and continued to defend its legal rights over a 75% stake in Dathcom Mining SA ("Dathcom Mining").
  • His pre-emption rights on 15% of Cominière's 25% interest in the Manono project.
  • AVZ highlights the report of the DRC General Inspectorate of Finance (IGF) on the mismanagement of mining assets in the DRC by the Congolese Mining Operations ("Cominiere").

In detail, here is the Ministerial Decree of January 28, 2023 of the Minister, Antoinette N'samba Kalambayi:

DEPARTMENTAL ARREST No. 00031 mine case /01/2025 OF 28 JAN 2023 REPORTING MIN RIEL ARREST NO. 00145/CAB.MIN/MINES/01/2022 GRANTING OPERATING PERMIT NO. 13359 TO DATHCOM MINING SA

THE MINISTER,

Having regard to the Constitution, as amended by Law No. 11/002 of 20 January 2011 revising

certain articles of the Constitution of the Democratic Republic of Congo of 18 February 2006, especially in its articles 93, 202 point 36 littera f and 203 point 16;

Having regard to Law No. 007/2002 of 11 July 2002 on the Mining Code, as amended and supplemented by Law No. 18/001 of 09 March 2018, especially in its Articles 10;

Having regard to Ordinance No. 22/002 of January 07, 2022 on the organization and operation of the

Government, modalities of collaboration between the President of the Republic and the Government as well as between the members of the Government;

Having regard to Ordinance No. 22/003 of 7 January 2022 fixing the powers of the Ministries, especially in its Article 1 B, point 35;

Having regard to Ordinance No. 21/012 of 12 April 2021 appointing Deputy Prime Ministers,

Ministers of State, Ministers, Deputy Ministers and Deputy Ministers;

Having regard to Decree No. 038/2003 of 26 March 2003 on the Mining Regulation, as amended and supplemented by Decree No. 18/024 of 08 June 2018;

Revised Ministerial Decree No. 00145/CAB.MIN/MINES/01/2022 of 22 April 2022 granting the Operating Permit 13359 to DATHCOM MINING SA; Considering the appeal of the Congolese mining company (COMINIERE), shareholder within DATHCOM MINING SA, formed by its reference letter CEM/DG/138/ckk/2022 of 07 December 2022; Considering that harmony and of the project, exacerbated by the signing of Ministerial Decree No. 00145/CAB.MIN/MINES/01/2022 of April 25, 2022, is likely to paralyze the exploitation of Lithium and prevent the State from channeling products from Operating Permit 13359;
Given the necessity and urgency,

Article 1:
Ministerial Decree No. 00145/CAB.MIN/MINES/01/2021 of 25 April 2022 granting Operating Permit No. 13359 to DATHCOM MINING SA is reported and cannot produce any effect.

Article 2:
The Secretary General for Mines and the Director General of the Mining Cadastre are responsible, each as far as he is concerned, for the execution of this Order, which enters into force on the date of its signature.

Done in Kinshasa, on 4 JAN 2023

Antoinette N’SAMBA KALAMBAYTI
 
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08/02/2023


Lithium Manono: How is ZIJIN with the illegal 15% (IGF) part of DATHCOM without any court decision?

Lithium Manono: How is ZIJIN with the illegal 15% (IGF) part of DATHCOM without any court decision?​

February 8, 2023
Kiki Kienge

By Kiki Kienge
The Ministry of Mines, on February 28, 2023, revokes the operating permit to DATHCOM, the joint venture between the Congolese State and the Australians of AVZ Minerals, for a "non-communication" of AVZ Minerals to partners (COMINIERE) on the purchase in 2017 of the 60% from DATHOMIR. So more than 6 years later!
As a reminder, AVZ never bought 1% of its shares in the Manono lithium project directly from the Congolese State, even from the Chinese group, Simon Cong.
The IGF, which is the financial control body of the Presidency of the Republic, confirmed in its report on DATHCOM, that the 15% of ZIJIN purchased from COMINIERE is in violation of the legal provisions, since the Congolese State has lost US$116 million. For a value of US$10 million for 1%, the 15% of the Congolese State in DATHCOM was sold at almost US$33 million, so US$2.2 million per % instead of the US$10 million of the market price:

"The sale of 15% of COMINIERE's shares in DATHCOM Mining to ZIJIN Mining was made in violation of the legal provisions on the State's withdrawal of the Portfolio companies and caused, in the light of the assessments made in the feasibility study, a significant loss of earnings for the Treasury valued at US$116,560,000. It was a real sale of the state's mining heritage for which you assume responsibility. » IGF Report.

Something recognized even by the Chinese group in a meeting with the Minister of the Portfolio, Adèle Kayinda; ZIJIN had even said he wanted to give up his 15%:

"The ZIJIN group proposes to return the 15% to the Congolese State and not to claim the price attached to it"

Namely, according to the IGF, even the US$33 million that should be used to revive the COMINIERE, would have disappeared from the state coffers to end up in the pockets of the COMINIERE executives and a few Congolese individuals.

Now ZIJIN with this statement, just after the arrest of the Congolese Minister of Mines, Antoinette N'samba Kalambayi, confirms that he is part of Dathcom with Dathomir's 15% illegal: "It is regrettable that AHV caused the Manono project to be blocked. Zijin will continue to work closely with the parties concerned to advance the development of the Manono project, for the benefit of local communities in the DRC. We encourage AVZ to show greater cooperation with the other Dathcom shareholders. Said Zijin Mining's internal legal advisor.

Given the report of the General Inspectorate of Finance, already in the hands of Congolese Justice, the IGF, which is an organ of the Presidency of the Republic, should the Minister not at least by another Ministerial Judgment suspend the participation of the Chinese group in Dathcom pending the decision of the judges?

The Congolese state of its 25% of the shares in Dathcom, lost 15% illegally sold to the Chinese of ZIJIN and 5% offered to MMCS, a company in Mauritius. Now in an article, the newspaper Financial Review, talk about a bribe of AHV Minerals executives to a Congolese businessman, Marius Mihigo. Which would have been charged by AVZ Minerals to facilitate the obtaining of an Operating Permit, in exchange; "one million dollars basic and by the proposal to offer an additional US$5 million in cash and shares. But the same newspaper, Financial Review is not able to demonstrate the illegality of this proposal and even that it is an act of corruption in DR Congo or Australia, but does not remain in vague accusations without a legal basis. Since even AHV Minerals shareholders were informed of the expenses for mediation in the DRC by Mr Marius Mihigo.

Something that could seem even more tendentious in the eyes of the readers of the Financial Review article, is that the Australian media voluntarily or not, in no way invokes the IGF report that confirms the illegality of the sale the COMINIERE of 15% to ZIJIN. But try to convince readers that the Chinese group, ZIJIN was legally partners in DATHCOM with its 15%, deemed non-compliant under Congolese law. Why demonize AVZ Minerals and sanctify ZIJIN, for what purpose?
 
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10/0202023
@Mr Inappropriate posted


#Manono #Lithium To better understand the situation of % in DATHCOM and who sold off my shares of the Congolese State . THE POPULATION OF MANONO EXPECTS DEVELOPMENT WITH THE EXPLOITATION OF ITS LITHIUM

Translation of all four of Kiki’s tweets below. Hint: use ChatGPT for better translations.

Translation of all four of Kiki’s tweets below. Hint: use ChatGPT for better translations.

1/4 Genesis of DATHCOM 2016-2023.
  1. DATHOMIR 70% and 30% for COMINIERE 🇨🇩.
  2. DATHOMIR sells 60% to $AVZ 🇦🇺.
  3. DATHOMIR receives 5% (75%) from COMINIERE for the "construction" of the Manono-Pweto road: AVZ 60%, COMINIERE 25%, DATHOMIR 15%."
2/4 4. DATHOMIR sells its 15% to AVZ, COMINIERE sells its 15% to #ZIJIN 🇨🇳 and COMINIERE gives 5% to MMCS 🇲🇺: AVZ 75%, ZIJIN 15%, #MMCS 5% and COMINIERE 5%.
  • DATHCOM was created before the arrival of AVZ, due to DATHOMIR's inability to raise funds for the research."
3/4 60% were sold to AVZ by DATHOMIR.
  • It should be noted that the Australian company #AVZ never directly bought the shares of the Congolese State (COMINIERE).
  • The leaders of COMINIERE in DATHOMIR, ZIJIN and MMCS are the ones who sold off the shares of the Congolese State.
4/4
  • The COMINIERE should recover 15% from ZIJIN and 5% from MMCS, which were considered a hold-up by the IGF. Kiki #Kienge.
 
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10/02/2023

After 2 articles in the Financial Review, AVZ clarifies its agreements with Marius Mihigo in the Manono lithium project​

February 10, 2023
Kiki Kienge

By Kiki Kienge
In two articles published on February 8, 2023, the Australian media advanced information, in particular about their collaborator, the Congolese businessman Mr Marius Mushagalusa Mihigo, whom the Australian lithium giant, AVZ considers inaccurate or incomplete:

"On June 1, a month after the cessation of activities, AHV CEO Nigel Ferguson authorized cash payment to Marius Mihigo, according to documents prepared for the board of directors by DLA Piper's lawyers. Mr. Ferguson had previously proposed to pay the DRC businessman an additional success bonus of US$3 million and US$2 million in AVZ shares if he helped the company obtain a mining license for the concession in which it claims a 75% stake. The journalist, Tom Richardson, had written in his article of February 8, 2023.

MARIUS MIHIGO
Executive MBA, former student at the CEDS in Paris (France), Harvard University (USA) and University of Oxford (UK). Marius Mushagalusa Mihigo is a versatile negotiator, specialist in secret diplomacy and international relations.

Now the Perth-based company, AVZ Minerals, wanted in a statement to clarify the engagement agreements with Marius Mihigo and his team, for a collaboration in DR Congo in the Manono lithium project. Here is the focus of the press release translated by our editorial staff:

AVZ hired Marius Mihigo as a strategic advisor with his team in the DRC, to:
  • give advice on the conduct of business in the DRC.
  • manage relations with the government and key stakeholders.
  • manage the security provisions in the DRC.
Terms of Mr. Mihigo's commitment recorded in a written agreement:
  • Mr. Mihigo and his team are only paid from an initial amount of US$1 million for their services.
  • reimbursement of expenses for travel, accommodation and food expenses (within a specified range) and other service-related expenses.
  • Disbursements for travel and ancillary costs must not exceed $5,000 without the prior agreement of the AHV.
  • The agreement does not provide for result fees.
  • AVZ carried out due diligence and independent of Mr. Mihigo, before and during his engagement, which revealed no material problems of probity or red flags.
  • The agreement requires Mr. Mihigo and his team to comply (as the company complies) with all applicable anti-corruption laws as well as the company's anti-corruption code of conduct.
Here is the link to read the AVZ anti-corruption policy: Project Description (squarespace.com.
 
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13/02/2023
@Frank Posted
Sometimes investors need to re-visit company announcements to get a true picture instead of relying on other posters opinions especially non holders.


A copy of the IGF Report is publicly available via https://igf.gouv.cd/rapports.
An English translation of the IGF report is published on AVZ’s website. http://bit.ly/3F5wKBA

The DRC General Inspectorate of Finance had been authorised to investigate the following matters:

• whether Cominière’s purported sale of its 15% interest in the issued shares Dathcom Mining SA (Dathcom) to Jin Cheng Mining (Jin Cheng Sale) was proper and appropriate;

• any liability in connection with the Jin Cheng Sale;

• the legality of Cominière’s and Dathomir’s other recent conduct.

By way of summary, the IGF Report includes the following conclusions reached by the DRC General Inspectorate of Finance:

• Cominière has acted in violation of its articles of association in respect of its transfers of mining titles to “external partners” without obtaining financial guarantees;

• Cominière has acted contrary to the DRC Mining Code in respect of its transfers of mining licences without such transfer having undergone the required prior assessment by a competent DRC governmental authority;

• the Jin Cheng Sale was subject to a number of irregularities including the failure to select the Government’s technical body for the valuation of the 15% interest the subject of the Jin Cheng Sale, and the failure to consider the definitive feasibility study valuation completed in respect of the Manono Project; • Cominière had inappropriately allocated ~USD6,800,000 out of the total USD33,440,000 in proceeds from the purported Jin Cheng Sale for operating needs (including for commissions, fees and exceptional remunerations of all those who would have otherwise contributed to the operation) to the detriment of productive investments;

• Dathomir failed to comply with its obligations under the incorporated joint venture agreement in respect of Dathcom Mining SA (Dathcom) dated 27 January 2017, as amended from time to time (Dathcom JVA); and

• Dathcom allegedly transferred mining exploration permits 12436, 12449 and 12450 illegally to third parties.

In response to the findings of the DRC General Inspectorate of Finance, AVZ confirms:

• AVZ acquired valid and legal title to the 60% of shares issued in Dathcom, including, for the avoidance of doubt, as a consequence of the waiver of any rights of Cominiere and Dathomir under the Dathcom JVA by virtue of their entry into that same agreement;

• following AVZ’s acquisition of its initial 60% of shares issued in Dathcom, AVZ performed the funding obligations under the Dathcom JVA; and

• neither it nor any of its representatives had any involvement in, nor any prior knowledge of, the transfers of mining exploration permits 12436, 12449 and/or 12450 to any third party.

AVZ further confirms that it is continuing to cooperate with all competent DRC governmental authorities regarding the findings within the IGF Report. This announcement was authorised for release by the board of directors of AVZ Minerals Limited.
 
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13/02/2023
@Sammael Posted

Such confusion and blatant corruption.
Lost track of the other articles/letters.
Anyone remember seeing this:

CEM/DG/138/ekk/2022 appeal anywhere from Cominière?

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13/02/2023
@Underwaterdark Posted

Thanks for posting mate, I put informative and relevant info here so I can access it easily rather than referring to the main threads

As in 2009 when the Australian-Canadian First Quantum Minerals (FQM) was stripped of its mining rights in the former Katanga (Haut-Katanga and Lualaba) for the benefit of a third party, the Sama Lukonde Government, under the reign of Félix Tshisekedi and with the same leaders in charge for more than fifteen years of the poorly reputed mining cadastre (CAMI), is in the process of applying the same recipe concerning the Manono lithium project in the province of Tanganyika. Against all expectations and to everyone's surprise, the Minister of Mines, Antoinette N'Samba Kalambay, miraculously and illegally cancelled, by order of January 28, 2023, the operating permit n°13359 of the company DATHCOM Mining SA much to the anger and disappointment of the populations of Manono. Reason given by the Minister: "conflicts between shareholders", this is not one of the reasons provided for by the mining law of the country. After investigations, Econews and a consortium of media and civil society organizations that have been monitoring the management of Cominière SA assets for two years came across written and audio documents, including a letter stamped "confidential" because of its content. against the interests of the country, written in Chinese and French, by which Zijin Mining Group Company presents its offer of partnership to the Congolese mining company (Cominière) for, he says, "to advance the lithium mining project of Manono”. which study served as a basis for the argument of Cominière SA, recently in international arbitration in Paris against MMCS1. As in 2009 with FQM, AVZ is therefore suffering the martyrdom of political control over the only viable and world-class mining project of President Félix Tshisekedi's mandate.

We know a little more about the real reasons which pushed the Government, via the Minister of Mines who seems like a simple executor of an illegal decision of the anti-patriots and sappers of the mining vision of Félix Antoine Tshisekedi, canceled, by its decree of January 28, 2023, operating permit no. 13359 relating to the Manono lithium project. As in 2009 under the reign of Kabila who withdrew from the Australian-Canadian First Quantum Minerals (FQM) all the mining rights it held on three flagship projects in Greater Katanga, namely Kinga-myambo Musonoi Tailings (KMT) became Metalkol, Frontier Sprl and the Lonshi mine for the benefit of Dan Gertler's companies,

In Kinshasa, everything is done to push AVZ Minerals to abandon its Manono project. In ambush, there is the Chinese Zijin Mining Company which pulls the strings, ready to pull out all the stops to recover the Manono project after its 35 million US dollars, there would have been more if the security services investigate well on statements attributed to the technical director of Cominiere, Kibeya, which circulate on social networks, for which the interim general manager of Cominière, Mwamba, is in detention after the audit report of the General Inspectorate of Finance (IGF).

It is therefore understandable why the Minister of Mines, on January 28, 2023, decided to cancel the EP granted in April 2022 to the company DATHCOM, in which AVZ Minerals is the majority shareholder. Curiously, the Minister of Mines justifies her decision by " conflicts between shareholders ". A scenario that can never lead to the forfeiture of a mining right, with regard to the mining legislation in force in the Democratic Republic of Congo.

Zijin's Dark Hand

What and who does AVZ Minerals bother? Why has Kinshasa just withdrawn PE n°13359 from DATHCOM? So many questions that led Econews to take a closer look at this project proposed by the Chinese in Zijin. Through a cross-checking and investigation exercise, our editorial staff and partners came across a letter from Zijin to the general management of the Congolese mining company (Cominière SA) dated October 21, 2022.

The title of this correspondence (Cfr. extracts in facsimile), signed from the Chinese city of XIAMEN, is evocative. By this letter, signed by CHEN Jingne in his capacity as Chairman of the Board of Directors of ZijinMining Group CO. Ltd, this Chinese group accused by NGOs of Lualaba for its abuses and violations of the laws at Comus and Kamoa Copper presented to Cominière its " partnership offer to advance the Manono lithium exploitation project ". Better an order to close the deal on the problematic $35 million.

From the outset, Zijin introduces his letter in these terms:We are honored to send you this letter in relation to the object taken up. As a multinational mining group, Zijin Mining Group Company Ldt (abbreviated as "ZijinMining") focuses on the exploration and exploitation of gold, copper and other metallic mineral resources as well as the application and study in engineering technology, headquartered at No. 1 Zijin Avenue, Shanghang Township, Longgyan City, Fujian Province, China. It is listed on both the Hong Kong Stock Exchange (Stock Code: 2899) and the Shanghai Stock Exchange (Stock Code: 601899). Service Center, Wickhamscay II, Road Town Tortola, VG 1110. JIN CHENG Mining Limited (abbreviated as “JIN CHENG”), is a subsidiary of Zijin Mining, headquartered at Vista Corporate Service Center, Wickhamscay II, Road Town Tortola, VG 1110 ".

The motives of Zijin Mining

Then, the letter describes all the steps taken: “Given that 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 "DA-THCOM"), 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) has was carried out by JIN CHENG on behalf of COMINIERE (the "Sale of 15% of shares"); Considering that the Extraordinary General Meeting of DATHCOM held on November 20, 2021 approved this transaction of sale of 15% of shares, thus materializing the quality of JIN CHENG as one of the shareholders of DATHCOM; minutes of the aforementioned Extraordinary General Meeting has been notarized, filed at the Single Window for Business Creation in Lubumbashi on November 23, 2021, and its resolutions have been registered in the RCCM Trade and Furniture Credit Register of the company DATHCOM; Given that the company AVZ International Pty Ltd, which is the majority shareholder in DATHCOM, noted all the resolutions adopted during the Extraordinary General Meeting of November 20, 2021 of DATHCOM, thus abusing its majority, consequently the Coordinated Articles of DATHCOM, as modified by the resolutions of the General Assembly of November 20, 2021, have not yet been signed to date; Since Zijin Mining, the parent company of JIN CHENG, which is one of the shareholders of DATHCOM, is eager to see the Manono lithium mining project develop successfully, given that the financial capacity, technical as well as operational have been demonstrated by Zijin Mining, which proves that it could move forward effectively in the construction and operation of the Manono lithium project; Given that the evaluation of the reserves in the PR13359 was made partially, during the transformation of the PR (Exploration Permit) into PE (Exploitation Permit), by the holder DATHCOM, who renounced the north-eastern part of the PR13359, which is the Affected Party; Given that COMINIERE's geologists have confirmed to Zijin Mining a certain mineralization potential within the scope of the Targeted Party; discuss the joint development of the Affected Party between ZijinMining and COMINIERE ".

In view of the foregoing, Zijin Mining then presented its offer – “ the Present Offer ” – in the following terms: “ 1. A joint venture agreement (the “Joint Venture Agreement”) will be entered into between a designated subsidiary of ZijinMining and COMINIERE, whereby the parties will create a joint venture (the “Joint-Venture”), in which the subsidiary of Zijin Mining will hold 71% of shares and COMINIÈRE 29% of shares” .

This offer concerns the northern part of the Permit of Dathcom Mining SA in Manono for which AVZ MInerals is the only Cominière partner to have invested expertise and money there in the exploration and studies which led to the certification of the largest lithium deposit in world when La Cominière and his poor engineers at the head of the Technical Department could not imagine it.

Zijin is even more explicit: After the creation of the Joint-Venture, COMINIERE will assign the mining right on the Target Party legally held by it to the Joint-Venture, free of any lien, charge, claim, dispute and default. The research, development and exploitation of the Covered Party will be carried out on behalf of the Joint Venture. On the date on which COMINIERE transfers the mining right of the Target Party to the Joint Venture by completing all the relevant procedures such as registration, registration and notarization, and the Joint Venture becomes the legal and effective holder of 100% of the rights and interests of the Affected Party, ".

Finally, Zijin concludes his letter by noting that " to avoid any ambiguity, it should be specified that if COMINIERE fails to legally and effectively Transfer the mining right of the Party Targeted to the Joint Venture, COMINIERE will not have the right to demand from JIN CHENG the retrocession of 15% of shares in DATHCOM, nor the waiver of the payment it made for the acquisition of 15% in the capital of DATIHCOM on behalf of COMINIERE ”.

The letter goes further: " In application of this Office, COMINIERE will undertake to bear any income tax, stamp duty, transfer duty and any other tax or duty which may arise in the DRC and in any other country or region following the above-mentioned "Return of 15% of shares", recalling that "both parties and its directors, officers, employees and agents must keep this letter and this Offer in the strictest confidence. No information, knowledge, discussion, negotiation or development between the parties of which they are aware in connection with this Offer, the Joint Venture Agreement and all transactions and documents relating thereto will be disclosed without the prior written consent of each party. ". And specify, to avoid any ambiguity: “ The validity of this Offer is 60 days (“the Validity”) from the date of its receipt by COMINIERE. In the event of acceptance of this Offer by COMINIERE, the latter must acknowledge receipt and sign on the signature page before the expiry of the Validity period. Otherwise, this Offer will be considered automatically null and void, unless Zijin Mining decides otherwise ”.

This is where investigators from the Court of Auditors, the internal security of the Presidency of the Republic of Jacques Tshibanda tshisekedi, the General Inspectorate of Finances of Jules Alingete Key and the National Intelligence Agency of Jean- Hervé Mbelu Biosha must snoop more with the Cominière, the Ministry of Portfolio, the Ministry of Mines, the Mining Cadastre, Zijin in the DRC to protect the interests of the Republic and bring to justice the accomplices in the sale of important mining assets

We understand everything when there is a deal that exists between Zijin and Cominière, millions of American dollars for illegal selling off according to the IGF. All in all, La Cominière could never conclude such a contract without the approval of its double hierarchy, namely the bosses of the Ministry of Portfolio and that of Mines. The pride of its Technical Director who is free despite the IGF Report demonstrates this. This clearly explains the decree of the Minister of Mines who will not be able to legally defend her signature before a panel of independent investigators. However, there is already an arbitration proceeding on this same mining Permit,

In reality, the Government has decided, to please the Chinese Zijin, to withdraw what rightfully belongs to DATHCOM Mining SA in which AVZ Minerals is a shareholder, as was the case with First Quantum Minerals in 2009 under Joseph Kabila by Minister Kabwelulu, for entrust it partially or entirely to the new joint venture formed between Zijin Mining Company (71% of shares) and Cominière (29%). A way to cover the 35 million USD or more disbursed by Chinese.

We therefore find ourselves with an unbalanced shareholding, to the benefit of the Chinese who already dominate the cupro-cobalt sector in a wild way. This financial arrangement demonstrates all the mafia surrounding this affair in which the investigations of the media consortium and NGOs working on the natural resources sector are certain to discover several corpses and skeletons in the cupboards of Congolese citizens who behave like mercenaries in the detrimental to the interests of the Republic. With these shameless practices, it is the President of the Republic who is stabbed in the back by crooked officials who undermine for prebends, as in the Mexican narcotic mafia, imposing a kind of omerta on any voice that will denounce evil .

File to follow.
 
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13/02/2023
@Underwaterdark Posted

Will be interested to see what you can find with the translations, but I assume they might have lumped in under another generic reason for cancellation.

If true (and I am sceptical of almost all non announcement news items) the plans of Zijin are pretty risky when laid bare.

Reads as though:

-Cominiere was keen to split the 13359 and scoop up the renounced northern portion for the Zijin/Cominiere JV.

-Offered a JV with 71% Zijin, 29% Cominiere.

-Based on Cominieres ability to transfer that northern portion to get the new portion assigned to the JV

-If cominiere can do this, then they get the rewards etc.

The part I like least of all is:

"In reality, the Government has decided, to please the Chinese Zijin, to withdraw what rightfully belongs to DATHCOM Mining SA in which AVZ Minerals is a shareholder, as was the case with First Quantum Minerals in 2009 under Joseph Kabila by Minister Kabwelulu, for entrust it partially or entirely to the new joint venture formed between Zijin Mining Company (71% of shares) and Cominière (29%). A way to cover the 35 million USD or more disbursed by Chinese"

Glad to know there is a level of oversight on Cominieres activities (what might actually happen is a different story):

"We understand everything when there is a deal that exists between Zijin and Cominière, millions of American dollars for illegal selling off according to the IGF. All in all, La Cominière could never conclude such a contract without the approval of its double hierarchy, namely the bosses of the Ministry of Portfolio and that of Mines. The pride of its Technical Director who is free despite the IGF Report demonstrates this.

This clearly explains the decree of the Minister of Mines who will not be able to legally defend her signature before a panel of independent investigators. However, there is already an arbitration proceeding on this same mining Permit,"
 
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I think there is a copy of the appeal floating around. It was reported on in December.

Thanks Sammy, I have been off the threads since yesterday and saw the info that was posted this morning and about to put it here.... then hopefully able to spend what's left of Valentine's Day with my better half 👍
 
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14/02/2023
@obe wan posted


That offer would have lapsed on 20th December ; I was wondering WTF was with cominieres letter, it was asking to pull down the decree, as it claimed AVZ made the decision on renouncing the north but c;aiming they ( cominiere) didn't agree to that.....its a letter which came totally out of the blue and something which should have surfaced months ago, as it would have made things a lot easier, in knocking out DG claim....if of course that was genuinely their concern all along.

Seems a bit of disconnect between DG and Cominiere...comineres letter was dated 7th of December 2022...so this was inside the offer period, we know AJN were after the North.....Zijin were after the 15% of the South; MoP was clearly in on and after gains; with involvement in both of the attempts on north and South....but then cominiere wants decree for the split pulled down; so what happened here then?

Did they find themselves in a situation where they were going shotgun, until Zijins offer dropped on Cominiere desk, which then shifted cominieres focus onto the North, with a 29% holding in a JV and the 15% back at zero cost...., but DG Cami and MoP had been trying to pull AJN through on the North....was one of these dodgy dealings all of a sudden going to be sacrificed for a more lucrative one?

How fast were cominiere expecting to get these decrees pulled down...hardly within a 2 week period ( between 7th and 20th) ; did zijin offer an extension to the 60 days hence why we seen a late drive for the decree to the north to be nullified which would see AJNs application scrapped, but potential negotiations grounds created, where by Zijin withdraw the 15% claim on the south, ROFR goes to AVZ, handbrake release, no ICC and the project back in motion, but in exchange that Zijin and Cominiere JV takes the north.

Hopefully cominiere / zijin and Cami have beached themselves now, with a dose of ‘fuck around and find out’; I reckon today's article is one they’ve wished hadn't surfaced
 
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14/02/2023
@Sammy_da_Smile Posted

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