Australia-based AVZ Minerals (US-OTC: AZZVF) said on Monday a new agreement between the Democratic Republic of Congo (DRC) and U.S.-backed KoBold Metals violates an international arbitration order tied to the disputed Manono lithium and tin project.
Kinshasa announced last week a preliminary deal with KoBold, an AI-driven exploration firm backed by billionaire investors including Bill Gates and Jeff Bezos, to jointly develop the southern portion of the Manono deposit. The site is one of the world’s largest untapped lithium sources.
AVZ, which holds a majority stake in Dathcom Mining — the company originally granted the license to develop Manon — has been locked in a legal battle with the Congolese government since 2023. That year, Congo’s mines ministry revoked AVZ’s permit, citing a lack of progress, and reassigned the rights to a subsidiary of China’s Zijin Mining.
The move prompted AVZ to file claims with the International Court of Arbitration and the International Centre for Settlement of Investment Disputes (ICSID). In January 2024, ICSID issued interim orders requiring Congo to recognize Dathcom Mining as the rightful license holder and to protect AVZ’s rights throughout the arbitration process.
In May this year, unlisted KoBold inked a deal with the DRC to buy AVZ Mineral’s stake in Manono, which included a $1 billion framework to develop the project and compensate AVZ Minerals for relinquishing its claims.
AVZ argues the new KoBold agreement violates ICSID orders, undermining international legal proceedings and raising concerns about Congo’s respect for arbitration rulings.
US Congo push
The Manono partnership comes as the U.S. steps up efforts to counter China’s dominance in global mineral supply chains. Congo, already the world’s largest cobalt producer and second-largest source of copper, also holds major reserves of lithium and tantalum—making it a strategic focus for American interests.
Washington has signalled a growing commitment to Congolese mining. A U.S.-linked group, including a firm run by former special forces members, is now the leading candidate to acquire Chemaf Resources, a major copper and cobalt producer in the DRC.
KoBold’s Congo deal marks the company’s second major push into Africa. The California-based startup, which uses artificial intelligence to locate critical minerals, recently led the largest copper discovery in Zambia in nearly 100 years. It already operates about 60 projects globally.
AVZ Minerals was formally delisted from the ASX in May last year as per exchange rules. The company had been under continuous suspension for two years after being placed in a voluntary trading halt in relation to Manono. It’s still trading on the U.S. over the counter market and on the Hamburg exchange.
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