Chinese miner Zijin locks horns with Australia’s AVZ over Congo’s Manono Lithium Mine in dispute about 15 per cent stake that could decide who controls project

Zijin Mining, one of China’s largest gold and copper miners, is entangled in a legal dispute with Australian miner AVZ Minerals over the purchase of a stake in one of the most important lithium projects in the world.

Zijin, which is based in China’s Fujian province and is listed in Hong Kong, said in a statement on its website on Monday that it is the legitimate owner of a 15 per cent stake in Congo’s Manono Lithium Mine.

“Zijin Mining will actively protect its legitimate rights and interests, and continue to address future issues through litigation and arbitration,” the miner said, adding that it had started legal proceedings to counter the Australian firm, which was denying its stakeholder status.

Zijin and AVZ’s competing claims are significant because the 15 per cent stake could result in the project falling under Chinese or Australian control, at a time when competition is rising among international mining giants because of the demand for materials such as lithium, which is used in the production of lithium-ion batteries for electric vehicles. It is now a matter for courts in Congo to decide.

Manono is “one of the most important new mining projects in the world that will significantly contribute to the global green energy transition”, AVZ said. The mine contains 16.3 million tonnes of lithium carbonate equivalent, Zijin said, citing an estimate completed in July 2021.

According to the Chinese miner, Congolaise d’Exploitation Minière (Cominiere) has transferred its 15 per cent shareholding in Dathcom Mining SA, a joint venture that owns 100 per cent of Manono, to Zijin.