The Manono Lithium project in DR Congo: a complex situation that requires urgent resolution
In a recent public announcement, AVZ Minerals affirmed that the Memorandum Of Understanding (MOU) with the government of DR Congo regarding the Manono Lithium project is progressing. However, it appears that this announcement turns out to be false, and that the Congolese government is increasingly frustrated with AVZ’s CO, Mr. Nigel Fergusson, as well as the current management of the company.
Indeed, the management of AVZ, headed by Mr. Nigel Ferguson, has been in place for 6 years already, and would therefore have had ample time to anticipate and resolve disputes with the partners of the DATHCOM joint venture. Unfortunately, these differences were not resolved, which led the Congolese government to decide to no longer negotiate with Mr. Nigel Ferguson and the current management of AVZ.
It appears that if a new AVZ Minerals management team emerges at the General Assembly next November, the DATHCOM joint venture partners, such as COMINIERE and DATHOMIR, would be ready to enter into negotiations and resolve differences with this new direction.
It is important to emphasize that Mr. Fergusson has adopted a very aggressive litigation approach in recent years, attacking all partners involved in the DATHCOM joint venture, including the Congolese government. This attitude is seen as a lack of respect towards COMINIERE, the government and the Congolese people.
Furthermore, this attitude resulted in the loss of the mining title which would have allowed the joint venture to move on to the mining project exploitation stage.
It is therefore essential to create the necessary conditions to resolve these disputes in an amicable and equitable manner. It is encouraging to see that the Congolese government appears to support the idea of negotiating an agreement in the interests of all parties, and above all, the Congolese people.
DATHCOM, a subsidiary of AVZ Minerals, along with AVZ management, have been involved in extensive legal battles in DR Congo, with results often unfavorable for AVZ. However, most of these cases have not been publicly disclosed, including the decision of the Lubumbashi Court of Appeal which upheld the conviction of Mr. Graeme Johnson, director of AVZ, to 3 years in prison for counterfeiting/ falsification, as well as the ordering of DATHCOM to pay damages to DATHOMIR.
Fortunately, there is now a sense of optimism about the future of the Manono Lithium project. The Congolese government appears ready to work with new management at AVZ Minerals, which could be put in place at the November General Assembly. Let us hope that this new management team will listen to the needs of DR Congo and work to resolve all outstanding issues, in order to finally allow the start and development of the project, for the benefit of all partners and the Congolese people.
Sources:
1. [Fatshimetrie](https://fatshimetrie.org/blog/2023/10/26/problemes-de-la-coentreprises-dathcom-et-le-projet-manono-lithium-en-rd-congo-une- complex-situation-that-requires-urgent-resolution/)
2. [Journal de RD Congo](https://www.journaldekinshasa.com/rdc-avz-minerals-manono-lithium-a-la-recherche-dune-sortie-de-crise/)
3. [Mining Review Africa](https://www.miningreview.com/lithium-project-dathcom-avz-minerals/)