05/03/2023
@Sammael Posted
sphynxrdc.com
Cancellation of DATHCOM's lithium exploitation license for Manono: the ruse of Zijin and his mafiosi exposed.
3 weeks ago
Not a day goes by without a scandal appearing in the Democratic Republic of Congo and upsetting the tranquility of the peaceful Congolese. This is the case of the very ambiguous cancellation of DATHCOM's lithium operating license which has been in the news for several days. This soap opera is very similar to the big joke of 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 , Sama Lukonde, under the reign of Félix Tshisekedi and with the same leaders in charge for more than fifteen years of the very dark mining cadastre (CAMI), which resolved to play its traditional score about the Manono lithium project in the province of Tanganyika. Worse still, the highly contested Antoinette N'Samba Kalambay, Minister of Mines, curiously, resolved to shamelessly cancel this operating permit in complete illegality, by the decree of January 28, 2023. This unfounded act of the suspension of operating permit no. 13359 of the DATHCOM Mining SA aroused great anger and disappointment among the people of Manono. Reason given by the Minister: “conflicts between shareholders”. This resonates like an insult for these populations who know well that this is not one of the reasons provided for by the mining law of the country. Having understood that there are many shadows in this matter, 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.
Back to a nebula
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 being 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 are investigating 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,
The motives of Zijin Mining
Then, the letter describes all the steps taken: "Since COMINIERE and JIN CHENG concluded on September 10, 2021 a contract for the transfer of shares (the "Transfer Contract"), 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) 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; Considering that the minutes of the aforementioned Extraordinary General Meeting were notarized, deposited at the One-Stop Shop for Business Creation in Lubumbashi on November 23, 2021, and its resolutions were entered in the RCCM Register of Commerce and Credit Mobilier of the DATHCOM company; 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; Considering that Zijin Mining, parent company of JIN CHENG, which is one of the shareholders of DATHCOM, wish to see the Manono lithium mining project develop successfully, given that the financial, technical as well as operational capacity has been demonstrated by Zijin Mining, this proves that it could move forward effectively in the construction and in the 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 Affected Party; Given that on August 15, 2022, Her Excellency the Minister of State,
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, pursuant to which 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 Dathcom Mining SA's Manono Permit for which AVZ MInerals is Cominière's only partner to have invested expertise and money there in exploration and studies leading 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 aforementioned "15% Share Retrocession", 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, discussions, negotiations or developments 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 closely 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 package demonstrates all the mafia that surrounds this case in which the investigations of the consortium of media and NGOs working on the natural resources sector is 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 .
