AVZ Minerals to resume proceedings against DRC over disputed lithium deposit
June 24 (Reuters) - Australia's AVZ Minerals said on Tuesday it will resume proceedings against the Democratic Republic of Congo (DRC) over mining rights to the Manono lithium deposit after the parties were unable to reach a settlement on a legal dispute over the deposit.
The unresolved issue poses a potential hurdle for California-based metals exploration firm KoBold Metals' plans to acquire AVZ Minerals' stake in one of the world's largest hard rock lithium deposits.
AVZ initially held the permit to develop the Manono project, but in 2023 the DRC's mines ministry revoked this permit on the basis that the project had not advanced quickly enough.
The rights were later granted to a unit of Zijin Mining (601899.SS), opens new tab, prompting AVZ to seek relief through both the International Court of Arbitration of the International Chamber of Commerce, and the International Centre for Settlement of Investment Disputes (ICSID).
The U.S. government has been encouraging the parties to settle the dispute, which led AVZ to temporarily suspend, opens new tab the ICSID arbitration proceedings in late May.
AVZ, whose shares were suspended in May 2022 and delisted two years later due to the dispute, said DRC did not engage with AVZ during the suspension period and the suspension has lapsed.
The ICSID proceeding will now resume, the company said.
KoBold Metals did not immediately respond to a Reuters request for comments.
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