17.6 C
Belgrade
09/10/2024
Mining News

Manono lithium mining project in DR Congo stalled amidst legal disputes and allegations of corruption

In Manono, a town in Tanganyika Province in northern Democratic Republic of Congo’s (DRC) Katanga region, the highly anticipated lithium mining project has yet to commence, despite confirmation of a significant lithium deposit over two years ago. The project’s delay is particularly striking given the high global demand for lithium, a critical component in battery technology. The prospect of lithium mining had raised hopes for improved infrastructure and job creation in the region.

Currently, agriculture remains the primary economic activity in Manono. However, many young people are abandoning farming in search of quick income by mining cassiterite, a mineral in high demand from buyers in India and China who have established local trading posts. Despite this, Dathcom Mining SA, the company set up specifically for the lithium project, has yet to begin operations. The situation is complicated by the Congolese government’s interest in a competing partner, the Chinese mining giant Zijin, which already operates copper and cobalt mines in Katanga.

Supported by

The DRC government has granted exploration permit no. 15775 to Manono Lithium SAS, a joint venture between Zijin and the state-owned company Cominière. This move appears to undermine AVZ Minerals, the Australian company that previously held a majority stake in the project. The DRC has accused AVZ of withholding exploration data, which AVZ denies. In response, AVZ has filed for emergency arbitration with the International Chamber of Commerce, seeking resolution to the dispute.

Dieumerci Kabila, a local journalist and civil society activist, expressed concern about the ongoing conflict and its impact on the community. He noted that the local population is eagerly awaiting the development of the mining project.

The Rietberg Mine, previously operated by Zaïretain until 1982, saw its activity decline and eventually cease in 1998 amid the Second Congo War. Since then, various private companies have acquired mining rights on the former Zaïretain deposits, now under Cominière.

AVZ estimates the Manono Lithium Project’s mineral resources at 400 million tons, promising significant economic benefits for Manono. However, the ongoing legal battle and corruption allegations cast doubt on the project’s future. A report by Global Witness has raised concerns about corruption in lithium projects across Africa, including Manono, potentially undermining the region’s control over this crucial mineral.

The DRC’s state anti-corruption body, IGF, criticized Cominière’s sale of a 15% stake in Dathcom to Zijin as a “cut-price sell-off,” resulting in a reported loss of $120.76 million. Additionally, Africa Intelligence revealed bribery schemes linked to Zijin’s involvement with Cominière and questioned the proper allocation of $70 million intended for humanitarian aid.

Environmental impact assessments for the project have yet to be completed, and local leaders like Cyprien Kitanga and Dieumerci Kabila are concerned about the lack of progress and transparency. Although Cominière’s acting managing director, Célestin Kibeya, assured that an environmental study has been conducted and will be published soon, it has not yet appeared on the company’s website.

As of August 2024, the start of mining operations remains uncertain, with the feasibility study results still awaiting approval from the Ministry of Mines. The local community remains hopeful but continues to face uncertainty regarding the future of the Manono lithium project.

Related posts

Canada Nickel advances environmental impact statement for Crawford nickel project

David Lazarevic

Austral Resources unveils promising scoping study highlighting copper production potential in Queensland

David Lazarevic

India’s NIOT conducts successful deep-sea mining trials in the Andaman Sea

David Lazarevic