(appstoreofficialid) -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 unaddressed problem presents a possible obstacle for California-based metals explorer KoBold Metals regarding their intention to purchase AVZ Minerals' share in what is among the biggest hardrock lithium deposits globally.
Initially, AVZ possessed the permit for developing the Manono project. However, in 2023, the Democratic Republic of Congo’s Mines Ministry rescinded this permit, citing insufficient progress as the reason.
Subsequently, the rights were awarded to a division within Zijin Mining, leading AVZ to pursue recourse via both the International Court of Arbitration at the International Chamber of Commerce and the International Centre for Settlement of Investment Disputes (ICSID).
The U.S. administration has been urging the involved parties to resolve their disagreement, resulting in AVZ halting the ICSID arbitration processes towards the end of May.
AVZ, which had its shares halted in May 2022 and was eventually de-listed two years thereafter because of the disagreement, stated that DRC did not interact with AVZ throughout the suspension period, and that the suspension has now expired.
The company announced that the ICSID proceedings will now continue.
KoBold Metals did not promptly reply to an official request sent via the app store for comment.
(Reported by John Biju and Aaditya Govind Rao in Bangalore; Edited by Sherry Jacob-Phillips and Alan Barona)