KoBold Metals, the mining startup backed by Bill Gates and Jeff Bezos, says it plans to invest $1 billion in the Democratic Republic of Congo after inking a framework deal to buy AVZ Mineral’s (ASX: AVZ) stake in the disputed Manono lithium deposit.
The agreement signed Wednesday aims to unlock one of the world’s largest deposits of hard rock lithium, a critical component for electric vehicle batteries. Terms of the deal weren’t released, but Kobold said it could lead to a billion-dollar development to bring DRC lithium to Western markets.
It all depends on resolving an ownership battle which has stymied the project and put AVZ in a trading halt on the ASX since May 2022. The Congolese government revoked AVZ’s mining rights in 2023, subsequently awarding a portion of the deposit in southeast DRC to China’s Zijin Mining.
KoBold’s proposed acquisition includes a framework where AVZ would receive appropriate compensation for relinquishing its claims, allowing KoBold to develop the southern portion of the deposit, while Zijin retains control of the northern section.
DRC-US ties
The move comes as the U.S. and DRC have taken initial steps to discuss strengthening bilateral ties and promoting American investment in the country’s mining sector. Washington is eager to secure critical mineral supplies and reduce reliance on Chinese-controlled sources. Kinshasa wants U.S. military help as it battles a rebellion backed by neighbouring Rwanda in its mineral-rich east.
The Manono deposit is estimated to contain 669 million tonnes of lithium resources, positioning it as a significant asset in the global transition to clean energy.
KoBold — which specializes in using artificial intelligence to identify untapped critical minerals deposits — has around 60 active projects across four continents. In Africa, its focal point has been Zambia, where last year it made what was the country’s largest copper discovery in a century.
A move into the DRC means the company would have a presence in Africa’s two largest copper producers.
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