AVZ Minerals has announced legal victory in its protracted dispute with the Democratic Republic of Congo (DRC) and Zijin Mining over the coveted Manono lithium mine. The International Court of Arbitration of the International Chamber of Commerce (ICC) has ruled in AVZ's favor, ordering the DRC's state-owned Cominiere to pay a penalty of 39.1 million euros ($42.46 million). This penalty stems from Cominiere's failure to comply with previous ICC orders to cease actions that would terminate its joint venture agreement with AVZ.

The Manono project, recognized as one of the world's largest hard rock lithium deposits, has been at the center of a complex legal battle. AVZ Minerals initially held the permit to develop the project, but the DRC's mines ministry revoked it in 2023, citing delays in project development. Subsequently, the rights were granted to a subsidiary of China's Zijin Mining, sparking AVZ to seek arbitration with the ICC.

"This ruling is a crucial step in our ongoing efforts to reclaim our rightful position in the Manono project," stated a spokesperson for AVZ Minerals. "The ICC's decision underscores the validity of our claims and sends a clear message about the importance of upholding contractual agreements."

The penalty imposed on Cominiere is a direct consequence of its non-compliance with earlier ICC directives, which aimed to preserve the status quo while the arbitration process unfolded. AVZ Minerals has indicated that it will explore all available avenues to recover the awarded penalty.

Adding to the positive momentum, AVZ Minerals has disclosed that it is engaging in preliminary, fact-finding discussions with several US-based parties to secure funding for the Manono project. This move signals the company's determination to revive the project and capitalize on the growing global demand for lithium, a critical component in electric vehicle batteries.

The legal victory and potential US funding represent a significant turnaround for AVZ Minerals, whose shares were suspended from trading in May 2022 and subsequently delisted two years later due to the ongoing dispute. The company's focus now shifts towards rebuilding investor confidence and advancing the Manono project.

The Manono lithium deposit is considered a strategic asset, capable of producing substantial quantities of high-quality lithium concentrate. Its development is crucial for meeting the increasing demand for lithium in the rapidly expanding electric vehicle and renewable energy sectors. The outcome of AVZ’s efforts to re-secure and develop the project will have significant implications for the global lithium supply chain.

The dispute highlights the complexities and risks associated with mining investments in resource-rich but politically volatile regions.