2023-10-25 03:56:37
Chinese company Zijin Mining has been granted a license to explore and develop the northeastern Manono lithium mine in the Democratic Republic of Congo, one of the largest lithium deposits in the world. Manono Lithium SAS, a joint venture between Zijin subsidiary Jinxiang Lithium and DRC state-owned Cominiere, has obtained an exploration license in the northeast of the concession, the company said in a statement on Tuesday on the Hong Kong Stock Exchange.
“If the exploration and feasibility studies go well, this project might become the first lithium production project for Zijin in Africa and the DRC,” Jian Heyuan, managing director of Manono Lithium, told Archyde.com in comments sent by email overnight.
“Zijin intends to complete the construction of the project within two years, following conducting the feasibility study and confirming the financing,” he added.
The company did not say when the project would begin exploration.
The exploration permit was initially obtained by the Australian company AVZ Minerals, but it was revoked by the DRC, which considered that the company had not exploited it quickly enough.
AVZ, which was worth A$2.8 when it was delisted from the Australian stock exchange last May, is contesting the decision and is engaged in a number of related arbitrations. Zijin first announced the exploration project in January 2022. It later entered into a legal dispute with AVZ over the purchase of a 15% stake in the Manono project in the DRC. “Zijin is committed to continuing the exploration and development of this project with Cominiere, the DRC, local stakeholders and the people of the DRC,” Chen Chen, Zijin Mining’s in-house legal counsel, told Archyde.com in a comment sent by email.
“We cannot speculate on the legal issues that will arise in the future, but we will defend the new JV so that work on the northern tenement can continue for the benefit of the DRC and its local communities.” Zijin, China’s largest gold and copper miner, has joined the global race for lithium assets in recent years, investing in both domestic mines and sites in Argentina to produce the metal used in batteries electric vehicles.
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