Problems of the DATHCOM joint venture and the Manono Lithium project in DR Congo: a complex situation that requires resolution
The DATHCOM joint venture and the Manono Lithium project in DR Congo are facing many issues that hinder their advancement and development. A public announcement dated October 9, 2023 claimed that the Memorandum of Understanding (MOU) with the DR Congo government was progressing, but this turns out to be completely false. In reality, the government is increasingly frustrated by the aggressive actions of the current management of AVZ Minerals, as well as their director Nigel Ferguson.
The current management of AVZ Minerals has been in office for 6 years, and could have anticipated and resolved the differences with the DATHCOM joint venture partners. However, they chose not to do so, leading to a deterioration in relations with local partners and the Congolese government.
The aggressive attitude of the current management of AVZ Minerals, in particular Nigel Ferguson, has created a climate of continued litigation, thereby stalling the Manono Lithium project. This attitude also led to the loss of the mining title necessary to move on to the exploitation stage of the project.
The DR Congo government has decided to no longer negotiate with the current management of AVZ Minerals and Nigel Ferguson. However, he is willing to talk with new management, hoping to resolve differences amicably and finally allow the project to begin.
With this in mind, three directors are nominated to manage AVZ Minerals at the November General Meeting. Michael Carrick, Peter Huljich and Ty Luddbrook recently held high-level meetings with Congolese government ministers and executives, receiving a favorable reception. This shows that the Congolese government is ready to work with this new team to find a solution that is in the interest of all parties, including the Congolese people.
It is essential to create the conditions necessary to resolve disputes in a fair and equitable manner. The DATHCOM joint venture partners are disappointed with the aggressive approach taken by the current AVZ Minerals team, and hope that new management will listen to their needs and work collaboratively to resolve outstanding issues.
There is optimism about the future of the Manono Lithium project. With new management at AVZ Minerals that will put the interest of DR Congo first, there is a good chance of finally seeing the project come to fruition, thus benefiting all partners involved and the Congolese people.
It now remains to be hoped that the negotiations can move forward quickly and that solutions can be found to allow the restart of the Manono Lithium project and its progression towards exploitation.. Resolving these issues will benefit all parties involved and contribute to the economic development of DR Congo.