In its public announcement dated October 9, 2023, AVZ Minerals claimed that the “Manono Lithium” project in the Democratic Republic of Congo (DRC) was moving forward through a Memorandum of Understanding (MOU) with the Congolese government. However, it turns out that this announcement is false and that the Congolese government is actually frustrated with AVZ’s CO (Chief Operating Officer), Nigel Fergusson, as well as the company’s current management.
AVZ’s current management, led by Nigel Fergusson, has been in place for six years. During this period, it would have had sufficient time to anticipate and resolve disputes with the DATHCOM joint venture partners. Unfortunately, she refused to do so, leading to an impasse in negotiations with the Congolese government.
It is now clear that the Congolese government has decided to no longer negotiate with Nigel Fergusson and the current management of AVZ. It appears that if a new management team takes the reins of AVZ Minerals, the DATHCOM joint venture partners, such as COMINIERE and DATHOMIR, would be willing to enter into negotiations and resolve outstanding disputes.
Importantly, Nigel Fergusson has adopted an aggressive litigation approach in recent years, targeting all partners in the DATHCOM joint venture, including the Congolese government. This attitude was seen as a lack of respect towards COMINIERE, the government and the Congolese people.
In addition, this attitude led to the loss of the mining title which would have made it possible to move on to the exploitation phase of the Manono project. Indeed, on January 28, 2023, a new Ministerial Decree revoked the previous decree which converted part of permit 13359 into an operating permit. This revocation was motivated by the need for harmonious cooperation between DATHCOM shareholders to move the project forward.
Unfortunately, until now, significant disputes persist between shareholders, mainly caused by AVZ Minerals and its current management, which is blocking the project.
However, there appears to be new optimism regarding the Manono Lithium project. The Congolese government would be ready to work with the new management of AVZ Minerals which will be put in place during the General Assembly scheduled for November. It is therefore to be hoped that this new management team will listen to the needs of the DRC and will actively work to resolve all unresolved problems to finally allow the start and development of the project, in the interest of all partners and the Congolese people.
It is crucial to create the conditions necessary to resolve these disputes in an amicable and fair manner. The DATHCOM joint venture partners are disappointed with the aggressive approach of Nigel Fergusson, who ignored his promises to withdraw litigation from the courts and tribunals to allow the project to begin.
In conclusion, it is crucial that AVZ Minerals adopts a conflict resolution approach in order to unblock the Manono Lithium project in the DRC. With a new management team and a more respectful attitude towards partners and the Congolese government, there is real hope that the project will move forward and benefit all stakeholders involved, as well as the Congolese people.