AVZ’s lithium dispute deepens

AVZ Minerals has launched arbitration proceedings against its project partner, a state-owned entity in the Democratic Republic of Congo, in the latest development of an ongoing ownership dispute.   

The West Perth-based lithium aspirant today told the market it had commenced proceedings before the International Court of Arbitration of the International Chamber of Commerce against La Société Congolaise d’Exploitation Miniere.

At the centre of the dispute is the Manono lithium project, which AVZ has previously touted to contain one of the largest and high-grade undeveloped hard rock lithium deposits in the world.

Through the Dathcom joint venture, AVZ claims it holds at 75 per cent stake in the project and rights to secure further interest and that DRC partner Cominière holds a 25 per cent stake.

According to a statement issued to the ASX, AVZ alleges its project partner had attempted to terminate the Dathcom arrangement without valid grounds.

AVZ is seeking 'various remedies' for the alleged breaches.

“The company considers Cominiere’s conduct to be unlawful and the company, together with Dathcom, will take all actions necessary, to protect the interests of its stakeholders, not least the people of the Democratic Republic of Congo,” AVZ’s statement read.

AVZ is already in disputes with Chinese mining group Zijin Mining and a company named Dathomir Mining Resources SARL over ownership of both Dathcom and the Manono project.

A hearing for those arbitration proceedings had been scheduled for mid-April but has been postponed until July.

AVZ said it considered the delay ‘unnecessary’ and maintained that it had strong prospects of success in both matters.

The company is also facing a shareholder class action for allegedly breaching its continuous disclosure obligations and misleading investors.

The proposed class action is to be run by law firm Johnson Winter Slattery.

The basis of the claim is that AVZ held information on the ownership disputes prior to a crucial market update in May 2022.

AVZ issued a brief statement in late December reiterating its belief that it has complied with its continuous disclosure obligations.

AVZ shares have been suspended from trading since May 2022.