KoBold Metals reportedly set to acquire AVZ’s interest in DRC lithium project

KoBold Metals, the Bill Gates-backed U.S. company, is reportedly set to acquire AVZ Minerals’ interests in the Manono lithium deposit located in the Democratic Republic of Congo (DRC), according to a Mining Weekly report seen by Zambia Monitor on Thursday.

KoBold, which is currently developing the US$2 billion Mingomba copper and cobalt mine in Chililabombwe, is said to have reached a commercial framework agreement with Australia-headquartered AVZ Minerals that would enable it to buy AVZ’s commercial interests in the deposit.

The companies claim that rapid and ethical development of the Manono deposit could contribute to peace and security in the region, and have advanced the process by agreeing on a framework that would facilitate its development.

“This framework entails AVZ selling its commercial interest in the deposit to KoBold for fair value,” the report stated.

The agreement is expected to enable KoBold to inject more than US$1 billion to bring Manono lithium to Western markets.

The companies also claim that the project’s development could generate a significant number of well-paying Congolese jobs over an extended period.

AVZ has reportedly committed to proposing to the DRC government a temporary suspension of the ongoing International Centre for Settlement of Investment Disputes (ICSID) arbitration proceedings, in a bid to facilitate the transaction and related discussions.

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