DRC Mining Newsletter 01-04-24

AVZ INTERNATIONAL WINS LEGAL BATTLE AGAINST ZIJIN MINING FOR OWNERSHIP OF THE MANONO PROJECT, ONE OF THE WORLD’S LARGEST HARD ROCK LITHIUM DEPOSITS, LOCATED IN DRC

AVZ International has won ICC arbitration proceedings brought against it by Jin Cheng Mining Company, a subsidiary of Zijin Mining.

As a reminder, the Manono project (Dathcom Mining SA - PR15775), one of the world's largest hard rock lithium deposits (mineral resources: 400 mt @ 1.65% Li2O. ), located in the Manono territory of Tanganyika province, has been at the center of a legal battle between Australia's AVZ Minerals and Jin Cheng Mining Company, with AVZ claiming a 75% stake in the asset and failure to acknowledge the sale by La Congolaise d'Exploitation (Cominière) to Jin Cheng of 15% of the shares in Dathcom.

AVZ maintains a 75% interest in Dathcom and a continuing pre-emptive right over 15% of Cominiere’s 25% interest in Dathcom. Learn more.

THE WATER IN RIVERS NEAR SOME OF THE LARGEST COPPER AND COBALT MINES IN THE DRC IS TOXIC AND COULD HAVE A DEVASTATING IMPACT ON HEALTH AND LIVELIHOODS, ACCORDING TO A REPORT BY RAID & AFREWATCH

According to a recent report by the RAID Group and DRC-based African Resources Watch, river water near some of the largest copper and cobalt mines in the Democratic Republic of Congo (DRC) is toxic. The report highlights the concerns of residents in the communities visited about the harmful effects of toxic contamination on their health, as well as its destructive consequences on local ecosystems and agriculture.

Learn more.

BARRICK SEEKS TO EXPLORE NEW GOLD AND COPPER DEPOSITS IN DRC

Barrick Gold Corporation, in partnership with the DRC government, is exploring new gold and copper opportunities beyond Kibali. Learn more. The success of Kibali, transformed into Africa's largest gold mine, has motivated this move. Indeed, the twelve months to December 31, 2023 brought Kibali Gold's year-end production to 763 Koz making it the main industrial player for gold mining in DRC (99,8% of 2023 production).

DIAMOND EXPORT SLUMP AND CONFLICT-INDUCED TANTALUM TURMOIL IN THE DEMOCRATIC REPUBLIC OF CONGO’S MINING SECTOR

In 2023, the Democratic Republic of Congo faced significant challenges in its mining sector, leading to a five-year low of 7.3 million carats in diamond exports, resulting in a loss of position as Africa's second-largest producer to Angola. Learn more.?

Meanwhile, the ongoing conflict in the eastern Democratic Republic of Congo (DRC), particularly in North Kivu province, has had a significant impact on tantalum exports. In 2023, there was a 59% drop in shipments due to the severe disruption caused by the conflict. This disruption can be attributed to the encirclement of the key trading hub of Goma, with the M23 rebel group blocking trade routes and facilitating the smuggling of tantalum, which is a crucial component in electronic devices. Learn more.

Note that the Democratic Republic of Congo plays a vital role in the global production of 3T minerals, particularly tin and tantalum, which are indispensable in various industries. Current location of these 3T minerals sites are predominantly concentrated in the Greater Kivu region, underlining the region's critical role in the global supply chain of these essential minerals.

For more information on DRC's 2023 mining production, find hereafter a detailed factsheet: https://fr.slideshare.net/slideshow/drc-mining-sector-performance-in-2023-no2pdf/267029295

Our team also prepared a factsheet on C?te d'Ivoire's mining industry: https://fr.slideshare.net/slideshow/cote-divoire-mining-industrys-kpispdf/267029262

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Best,