Title: The AVZ affair and the cancellation of the mining permit: a complex and controversial situation
Introduction :
The AVZ company and the DRC government find themselves at the heart of a complex legal matter following the cancellation of the mining permit. A request for arbitration was filed by AVZ with the ICSID, thus arousing strong tensions and fueling debate. In this article, we will explore the different aspects of this affair and attempt to shed light on the issues involved.
Failure to comply with contractual obligations:
One of the main accusations against AVZ concerns the non-compliance with contractual obligations established by the Mining Code and the Dathcom JV contract. According to the investigation, AVZ submitted an illegal feasibility study without the required approval from Cominière, the company to which the hydroelectric plant belongs. In addition, the proof of financing presented by AVZ would be fraudulent, not corresponding to legal requirements.
Alleged insider trading:
Another issue at the heart of the case is the suspicion of insider trading involving Nigel, a shareholder and director of AJN. It is alleged that the decision to give up certain mining squares was not approved by the General Meeting of Shareholders of Dathcom, thereby harming the interests of other shareholders. This implication raises serious questions about the ethics of AVZ’s business practices.
The consequences of canceling the mining permit:
The cancellation of the mining permit has significant consequences for AVZ. In addition to stopping mining exploration activities, this calls into question the company’s financial projections and investment. Furthermore, it also impacts the image of AVZ, which finds itself in the spotlight, highlighting potential irregularities in their business practices.
The DRC government’s perspective:
On the side of the DRC government, the cancellation of the mining permit seems to be justified by the non-compliances noted in AVZ’s EP request. This is an action aimed at preserving the financial and legal interests of the State and ensuring compliance with existing laws. However, this decision is the subject of strong criticism and raises concerns about the business environment in the DRC.
Conclusion :
The AVZ affair and the cancellation of the mining permit highlight the complex issues in the mining sector in the DRC. While accusations of non-compliance with contractual obligations and insider trading hover over AVZ, the DRC government defends its action as legitimate in compliance with the laws in force. This case highlights the importance of transparency, ethics and compliance with regulations in the field of natural resources. It also raises questions about the need for stricter regulation and increased control in the mining sector in the DRC.