AVZ Minerals shareholders are preparing for a decisive General Meeting on November 23rd. The objective of this meeting is to choose three new administrators to regain the confidence of the Congolese Government and the partners of the “Manono lithium” project. This meeting comes after years of tension between AVZ Minerals, an Australian company which owns about 60% of the shares of “DATHCOM MINING”, and government agencies in the DRC.
Since the acquisition of majority shares of “DATHCOM MINING” by AVZ Minerals in 2017, field work has remained suspended. The joint venture contract was even terminated and the Exploration Permit PR 13359 was returned to COMINIERE SA, the holder of the mining title. Moreover, numerous conflicts have arisen between AVZ Minerals and the minority shareholders, due to the opaque management and the attempts to appropriate the shares at ridiculous prices. These disputes have resulted in several lawsuits in national and international courts.
In this context, the shareholders of AVZ Minerals must choose directors who are conciliatory, wise and experienced in negotiations at the General Meeting. It is crucial to respect the Congolese State, COMINIERE SA, which represents the interests of the DRC, and the other partners, and to favor the path of negotiation rather than that of trials.
A better collaboration with COMINIERE SA, which holds 10% of the shares of the joint venture, as well as with DATHOMIR and JIN CHENG, who respectively acquired 15% of the shares, would be essential to relaunch and develop the project. Ignoring other shareholders would only aggravate the conflicts that have held the project back so far.
Although negotiations between AVZ Minerals and the Congolese government have already begun, through discussions with the Ministry of Justice regarding the arbitration initiated by AVZ Minerals against the DRC, it is important to emphasize that the DRC is not a shareholder from DATHCOM MINING. Its interests are represented by COMINIERE SA.
In conclusion, the General Assembly of AVZ Minerals is a chance to renew the management of the company and to revive the “Manono lithium” project. It is essential to promote collaboration with other shareholders and to work in harmony with government agencies and partners to ensure the success and development of the project.