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Legal action over huge DR Congo lithium project on hold as US battles China’s dominance
Australia’s AVZ Minerals has paused legal action over a Congo mining project as the US seeks to buy its stake and rival China’s interests
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Australia’s AVZ Minerals has suspended its arbitration case against the Democratic Republic of Congo until later this month, following US encouragement to resolve the dispute over the massive Manono lithium project.
The suspension, announced last week, comes as Washington backs American start-up KoBold Metals – funded by tech billionaires including Bill Gates and Jeff Bezos – to acquire AVZ’s stake in Manono.
If successful, KoBold will pledge US$1 billion (7.2 billion yuan) to develop the project, countering China’s Zijin Mining, which controls the northern section of Manono after the DR Congo revoked AVZ’s rights in 2023.
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However, KoBold is a small entity compared to CMOC Group, CNMC and other Chinese mining companies operating in the central African country.
AVZ said in a statement last week that the US government had “encouraged the parties to take whatever steps are necessary to allow for a climate conducive to discussions leading to a meaningful settlement” between the DR Congo and AVZ.
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The move signals Washington’s growing efforts to secure critical minerals in Congo, directly challenging China’s dominance in the country over control of critical minerals such as lithium and copper, vital for the global green energy transition.
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