Interim arbitration win for AVZ

West Perth-based AVZ Minerals has secured an interim win in an ongoing international arbitration against the Democratic Republic of Congo over a mine licence.

AVZ Minerals subsidiaries, AVZ International and Green Lithium Holdings, started arbitration proceedings against the Democratic Republic of Congo (DRC) before the International Centre for Settlement of Investment Disputes (ICSID) in Washington in mid-2023.

The arbitration proceedings commenced with Dathcom Mining SA, a part-owned subsidiary of AVZ Minerals.

The junior miner claimed the DRC failed to comply with the mining code, particularly on issuing an operating permit to Dathcom for AVZ’s flagship Manono project.

The ICSID has ordered the DRC to acknowledge that Dathcom was the holder of the mining licence at the centre of the dispute, AVZ Minerals announced.

AVZ Minerals said, in its announcement, that the tribunal’s decision to grant provisional measures was an interim one.

“It does not involve any final conclusion as to the merits of the case, which remain to be determined in the substantive proceedings,” the company said.

AVZ Minerals claimed DRC unlawfully transferred the mining licence from Dathcom to DRC’s partner Cominiere, which holds a 25 per cent stake in the Manono project.

“Accordingly, the company will continue with its efforts to confirm its and Dathcom’s ownership of the northern area of the Manono project either through its continued negotiations with the DRC government’s senior public officials or the prosecution of the ICSID and [International Court of Arbitration] proceedings to their conclusion,” AVZ Minerals said in its announcement.

“However, the company’s board of directors considers this decision provides significant further impetus for a negotiated outcome.”