Latest news with #AVZMinerals
South China Morning Post
3 days ago
- Business
- South China Morning Post
Legal action over huge lithium project in DR Congo on hold as US battles China's dominance
Perth-based AVZ Minerals has suspended its arbitration case against the Democratic Republic of Congo until later this month, following US encouragement to resolve the dispute over the massive Manono lithium project The suspension, announced last week, comes as the US backs start-up KoBold Metals – funded by tech billionaires including Bill Gates and Jeff Bezos – to acquire AVZ's stake in Manono. If successful, KoBold will pledge US$1 billion (7.2 billion yuan) to develop the project, countering China 's Zijin Mining, which controls the northern section after Congo revoked AVZ's rights in 2023. However, KoBold is a relatively small entity compared to CMOC Group, CNMC, and other Chinese mining companies in the African country. AVZ said in a statement last week that 'the United States Government has encouraged the parties to take whatever steps are necessary to allow for a climate conducive to discussions leading to a meaningful settlement between the DRC and AVZ'. The move signals Washington's growing efforts to secure critical minerals in Congo , directly challenging China's dominance in the country over control of critical minerals such as lithium and copper, vital for the global green energy transition.
Yahoo
08-05-2025
- Business
- Yahoo
Bezos-Backed Firm Signs Deal to Advance Congo Lithium Mine
(Bloomberg) -- KoBold Metals Co. has reached a preliminary agreement to move forward with the development of one of the world's biggest hard rock lithium deposits in the Democratic Republic of Congo. The Battle Over the Fate of Detroit's Renaissance Center Vail to Borrow Muni Debt to Ease Ski Resort Town Housing Crunch Is Trump's Plan to Reopen the Notorious Alcatraz Prison Realistic? Iceland Plans for a More Volcanic Future The firm, backed by billionaires Bill Gates and Jeff Bezos, reached a framework agreement with Australia's AVZ Minerals Ltd. to buy the latter's stake in project on the Manono deposit, according to a letter signed by KoBold Chief Executive Officer Kurt House and his AVZ counterpart Nigel Ferguson. 'The agreement will enable KoBold to rapidly deploy more than $1 billion to bring the Manono lithium to Western markets,' said the companies, which are working on the arrangement with the US and Congolese governments. The announcement comes after Congo's President Felix Tshisekedi met with Massad Boulos, US President Donald Trump's senior adviser for Africa, to discuss potential American investment and security assistance in Congo's fight against a Rwanda-backed rebel group. Tshisekedi is hoping US interest in Congo's minerals will encourage the Trump administration to back his government, which is teetering amid the rebel advance in the east. Besides lithium, the central African nation is the world's second-largest source of copper and biggest producer of the electric-vehicle battery metal cobalt. Any final deal for the lithium around the southeastern town of Manono will require the resolution of multiple arbitration cases surrounding the deposits. AVZ was close to breaking ground on mine construction when Congo canceled its rights in 2023 and split the permit, handing part to China's Zijin Mining Group Co. AVZ is willing to suspend the arbitration proceedings to 'facilitate discussions' between the parties, the two CEOs said in the letter. Congo will need to return the license containing the southern section of the Manono project to KoBold for the development to proceed. KoBold has proposed a plan that would see AVZ receive compensation, while Zijin continues developing a mine in the northern portion of the Manono deposit, according to another letter addressed to Tshisekedi's office in January and seen by Bloomberg. Rio Tinto Group has also held talks with Congo and KoBold about investing in the project. Spokespeople for Congo's presidency and mines ministry didn't immediately respond to questions seeking comment on the agreement between AVZ and KoBold. AVZ said in 2020 it intended to build a mine at Manono capable of producing about 700,000 tons of lithium concentrate a year for two decades. That would the biggest operation of its kind outside Australia. Michael Bloomberg, the majority owner of Bloomberg News's parent Bloomberg LP, is an investor in Gates' Breakthrough Energy, which holds a stake in KoBold, according to the company's website. (Updates with information on arbitration cases from seventh paragraph) US Border Towns Are Being Ravaged by Canada's Furious Boycott Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem Made-in-USA Wheelbarrows Promoted by Trump Are Now Made in China Inside the Dizzying Chaos of Running a Freight Business Under Trump Why Juggling IVF With Work Can Be a Career Killer ©2025 Bloomberg L.P. Sign in to access your portfolio
Reuters
07-05-2025
- Business
- Reuters
KoBold Metals agrees on framework to buy stake in Congo lithium deposit
May 7 (Reuters) - California-based metals exploration company KoBold Metals said on Wednesday that it had agreed on a framework to buy AVZ Minerals' interests in the Manono lithium deposit in the Democratic Republic of Congo. The agreement will enable KoBold, which is backed by billionaires Bill Gates and Jeff Bezos, to invest more than $1 billion to bring lithium from Manono to Western markets. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Lithium, a key metal used extensively to make batteries for electric vehicles and various consumer electronics, is produced in limited quantities in the United States, leading to a heavy reliance on China. The administrations of both President Donald Trump and his predecessor, Joe Biden, have made efforts to reduce this dependency. Last month, Massad Boulos, President Trump's senior adviser for Africa, said that the United States is in talks to invest billions of dollars in the mineral-rich Congo. The country boasts vast reserves of cobalt, lithium, uranium and other minerals essential for the energy transition. Both the Silicon Valley start-up and AVZ Minerals said that they were collaborating with all stakeholders involved in the deal, including the governments of the United States and the DRC.
Bloomberg
07-05-2025
- Business
- Bloomberg
Bezos-Backed Firm Signs Deal to Advance Congo Lithium Mine
KoBold Metals Co. has reached a preliminary commercial agreement to move forward with development of one of the world's biggest hard rock lithium deposits, in the Democratic Republic of Congo. The firm backed by billionaires Bill Gates and Jeff Bezos reached a framework agreement with Australia's AVZ Minerals Ltd. to buy the latter's stake in a project for the Manono deposit, according to a letter signed by KoBold Chief Executive Officer Kurt House and AVZ CEO Nigel Ferguson.
Yahoo
01-04-2025
- Business
- Yahoo
Rio Tinto in talks with DRC to develop lithium deposit
Rio Tinto Group has held discussions with the Democratic Republic of Congo (DRC) to develop one of the world's largest hard rock lithium deposits, reported Bloomberg. The negotiations, which have taken place in recent weeks, revolve around the possibility of Rio Tinto transforming the Roche Dure deposit into a lithium mine, said sources familiar with the matter. The outcome of these talks remains uncertain as the discussions are in the early stages. The DRC is seeking to attract Western investment to counterbalance Chinese dominance in its mining industry. The country is also exploring a minerals-for-security deal with the US to support its fight against regional insurgencies in its eastern provinces. The Roche Dure lithium deposit, initially identified by Australian company AVZ Minerals, has attracted interest from multiple parties. The deposit is estimated to hold mineral resources of 400 million tonnes at 1.65% lithium oxide, 715 parts per million (ppm) of tin and 34ppm of tantalum, as of May 2019. Located near the Manono lithium project in south-eastern Congo, the licence is currently subject to arbitration proceedings initiated by AVZ Minerals after the DRC Government cancelled its rights and redistributed them, with the northern section going to Zijin Mining Group. In March, AVZ Minerals announced that an International Chamber of Commerce tribunal had issued a partial award, ordering DRC's state-owned Cominière to pay €39.1m ($42.4m) plus interest for non-compliance with emergency orders over the Manono lithium project. Rio Tinto's talks with the DRC on the development of the Roche Dure deposit highlight the company's growing interest in battery metals essential for the electric vehicle industry. The company is aiming to establish itself as a significant player in the lithium supply chain, contrasting with other mining giants such as BHP and Glencore, which have been more cautious about entering the lithium market. Rio Tinto's expansion strategy includes the acquisition of Arcadium Lithium for $6.7bn (£5.19bn) last year, as well as developing assets in Serbia and Argentina. KoBold Metals, supported by investors such as Bill Gates and Jeff Bezos, has also expressed its intention to develop the deposit once legal disputes are resolved. There is speculation that KoBold and Rio Tinto may collaborate on the mine, although both companies are also considering independent involvement, the report added. "Rio Tinto in talks with DRC to develop lithium deposit" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
