NEWS
AVZ building strong contacts with DRC government
AVZ Minerals has revealed to shareholders that the newly established government of the Democratic Republic of the Congo ( DRC ) had approved the draft inter-Ministerial decree and draft cooperation agreement with the lithium and tin developer .
The approval of both documents by the DRC government ’ s Council of Ministers would deliver significant fiscal benefits for the Manono lithium and tin project , once finalised , AVZ told shareholders .
“ The approval of both the draft decree relating to the cooperation agreement and the daft cooperation agreement is yet another milestone for the Manono project ,” said MD Nigel Ferguson .
“ The final cooperation agreement will deliver significant long-term economic benefits for the project , as well as further underpinning our substantial investment in the DRC .
“ It will also deliver long-term benefits for the people of the Manono region , including access to improved health and education services , stable employment opportunities and upgraded infrastructure including electricity supply .”
Ferguson said that the cooperation agreement also reinforced the DRC government ’ s pledge to financiers that the country was open for business to the international investment community
A definitive feasibility study into Manono has estimated that it would produce around 700 000 t / y high grade lithium and 45 475 t / y of primary lithium sulphate over a 20-year mine life .
The project is expected to require a capital investment of some $ 545.5-million , which will include transport upgrades and the rehabilitation of the Mpiana Mwanga hydroelectric power plant , which would account for $ 41.85-million and $ 46.54-million worth of investment , respectively .
Barrick Gold begins talks with the DRC Government regarding the 2018 mining code
The Democratic Republic of Congo overhauled its mining code in 2018 , to try to benefit more from its natural resources , which includes the world ’ s largest cobalt reserves .
Despite firms lobbying the government to reconsider the terms , the code was signed into law in 2018 . Barrick Gold recently opened a discussion with DRC Govt on this controversial mining code .
The CEO of Barrick Gold , Mark Bristow , said he expected “ real change ” in the regulatory and political environment of the Democratic Republic of Congo ( DRC ) following the formation of “ a true ” coalition government in the country .
DRC president , Felix Tshisekedi , formed a new cabinet in April signalling that the balance of power in the central African country may have shifted . Previously , the cabinet reflected the influence of the former head of state , Joseph Kabila .
“ I think we will land on a proper set of legislation and allow investors to get money out of the country ,” said Bristow , adding that “ engagement ” on a controversial Mining Code promulgated under Kablia in 2018 “ had already started ”.
“ There has been no new net investment in the DRC since the mining code was brought into being and now we ’ ve got charging mineral prices ,” said Bristow .
The DRC is one of the world ’ s largest copper producers . The price of the metal surged through $ 10,000 / t again this week – its highest level in about a decade – after fresh supply side concerns developed in Chile .
The DRC ’ s mining code drew criticism from miners at the time of its being passed into law . Mining firms said it disregarded stabilisation clauses in the previous code by immediately upping export duties on the base and precious minerals production .
Bristow said the newly elected prime minister of the DRC ( Jean-Michel Sama
Lukonde ) was “ a real deal guy . We met with him about 10 days ago .”
“ We also get to meet with Felix Tshisekedi any time we need to talk to him ,” said Bristow . Barrick ’ s recent track-record with the DRC has been far from perfect . The company has been trying for nearly two years to extract its $ 500m share of profits generated by Kibali Goldmines SA , a joint venture which it holds with AngloGold Ashanti .
It has also faced disruption in the joint venture from SOKIMO ( Societe Miniere de Kilo-Moto ) which has a 10 % stake in Kibali Goldmines . It filed a financial claim with the commercial court in the DRC ’ s Kinshasa during April saying it was owed $ 1.1bn in unpaid dividends and other funds .
Barrick described the court action as an attempt to “… extort certain benefits from the company ”. Said Bristow this week : It is of no real importance . Just ignore it . The court has dismissed the claim .”
www . fmdrc-Zambia . com 3