AVZ Minerals shareholders are preparing for a crucial General Meeting to be held on November 23. The objective of this meeting is to appoint three administrators in order to restore the confidence of the Congolese government and all the partners of the “Manono lithium” project.
Since its acquisition six years ago, AVZ Minerals, an Australian company, has faced tensions with government agencies in the DRC. This acquisition allowed AVZ to take possession of 60% of the shares of “DATHCOM MINING”, a project aimed at mobilizing the necessary funds to carry out feasibility studies for the exploitation of a large lithium deposit located in the province of Tanganyika.
However, despite AVZ being appointed to manage DATHCOM MINING, work was halted and the joint venture contract was terminated. Additionally, only a third of the mining concession was investigated and numerous conflicts arose between AVZ Minerals and the minority shareholders, due to management problems and AVZ’s attempts to acquire the minority shareholders’ shares at a low price. ridiculous. All this led to a series of national and international trials.
It is therefore imperative that AVZ Minerals shareholders choose conciliatory, wise and experienced directors in negotiations at this general meeting. This is the only way that the “Manono lithium” project can prosper for the benefit of everyone, the DRC, local populations and shareholders.
It is important that the new administrators are respectful of the Congolese State, of the COMINIERE SA company – which represents the interests of the DRC in the joint venture – and of the other partners. The route of negotiation must be favored, rather than legal proceedings.
Although AVZ Minerals has entered into negotiations with the Congolese government regarding the arbitration initiated before the ICSID in New York, it is essential to emphasize that the DRC is not a shareholder in DATHCOM MINING. Its interests were validly represented by COMINIERE SA.
In this new configuration, AVZ Minerals will have to negotiate with COMINIERE SA, DATHOMIR and JIN CHENG, in order to give the project a chance to develop. Ignoring the other shareholders would risk aggravating the conflicts which are currently undermining the project.
In conclusion, the AVZ Minerals General Assembly in November will be crucial to restore confidence and relaunch the “Manono lithium” project. It is essential to elect competent administrators, capable of negotiating constructively with all partners involved.