Tensions escalate over control of Manono project as KoBold Metals strikes deal with Kinshasa
Australia-based AVZ Minerals has accused the government of the Democratic Republic of Congo (DRC) of breaching an international arbitration order by entering into a new agreement with KoBold Metals, a U.S.-backed company, to develop a key section of the Manono lithium project.
The Manono deposit is one of the world’s largest known reserves of lithium and tin—critical minerals used in electric vehicle batteries and modern electronics.
KoBold Deal Sparks Legal Clash
On July 18, 2025, the DRC government signed an agreement with KoBold Metals to jointly develop the Roche Dure deposit, the southern portion of the Manono site. This move signaled a major pivot in the government’s development strategy and effectively positioned KoBold as its preferred partner on the long-delayed project.
However, AVZ Minerals—through its local joint venture Dathcom Mining—claims to hold the majority stake in the deposit and argues that the DRC’s deal with KoBold directly violates interim orders issued by the International Centre for Settlement of Investment Disputes (ICSID).
Arbitration Measures Ignored, Says AVZ
In January 2024, the ICSID tribunal instructed the DRC to:
- Recognize Dathcom Mining as the lawful holder of the contested mining license.
- Preserve AVZ’s legal rights during the ongoing arbitration process.
“On 18 July 2025, AVZ informed the ICSID tribunal of the KoBold agreement, which constitutes a breach of its orders,” the company said in a press statement.
Background to the Dispute
AVZ’s dispute with the DRC dates back several years and centers on the government’s failure to issue a long-promised mining permit. This regulatory impasse has kept the Manono project on hold, despite the site’s vast resource potential.
In the interim, the DRC reassigned rights over the project—first to a Zijin Mining subsidiary and now to KoBold—triggering international arbitration and claims of contract violations from AVZ.
AVZ Signals Openness to Negotiation
Despite the legal standoff, AVZ says it remains open to constructive dialogue with the DRC government, KoBold, and other stakeholders. The company emphasized that it continues to pursue a commercial resolution that respects its legal and contractual rights.
Neither the DRC government nor KoBold Metals has issued public comments on the allegations.
