The deal between Perth-based lithium explorer AVZ Minerals and KoBold Metals over the ill-fated Manono lithium project in the Democratic Republic of Congo (DRC) appears to have been sealed following a successful framework deal between the United States Government and DRC president Felix Tshisekedi.
It’s understood that support from these two respective governments makes it possible for the previously stonewalled on-sale of AVZ’s Manono interests to California-based KoBold Metals, a mining startup backed by billionaires Bill Gates and Jeff Bezos.
The final resolution of the protracted ownership dispute over Manono underpins a critical minerals pact between the war-torn DRC and the Trump administration.
Located in southeastern DRC, the Manono project is said to be one of the world’s largest deposits of hard rock lithium.
The project has been in legal limbo since 2023 when the Congolese government revoked AVZ’s mining rights and subsequently awarded a portion of the deposit to China’s Zijin Mining.
While Zijin retains control of the northern section of the Manono project, the green light for AVZ to on sell its interests in Manono to KoBold Metals is a major broadside to Chinese interests in Africa.
It’s also instrumental in stated plans by the U.S. administration to reduce both its reliance on Chinese-controlled sources and China’s global stranglehold on critical minerals.
While details remain unclear, previous discussions pegged the on-sale of AVZ’s interests in Manono at around US$1.5 billion (2.38 billion) plus a royalty.
In a joint statement, AVZ and KoBold recognised that the “rapid ethical development of the Manono lithium deposit should play a role in supporting peace and security.”
KoBold is expected to deploy around $1 billion developing the Manono project and bringing its lithium to Western markets.
The framework deal reached between the U.S. government and the DRC follows meetings in March between U.S. Senior Advisor for Africa, Massad Boulos, and DRC President Félix Tshisekedi to discuss American investment in the country’s mining sector.
A month earlier, the DRC offered the U.S. exclusive access to critical minerals and infrastructure projects in exchange for security assistance.
What the DRC was looking for was U.S. protection from Rwanda-backed M23 rebels that have overrun parts of the mineral-rich country.
Meanwhile, AVZ and KoBold said they were working with “all possible speed” to conclude the sale.
"AVZ and KoBold are working cooperatively with all stakeholders, including the US government, the DRC government, and AVZ’s current development partner,” they said.
With 669 million tonnes of lithium resources - positioning it as a significant asset in the global transition to clean energy – the Manono deposit adds to KoBold’s 60 active projects across four continents.
In Africa, its focal point has been Zambia, where last year it made what was the country’s largest copper discovery in a century.
KoBold may opt to bring in a partner to help develop Manono and it’s understood that Rio Tinto (ASX: RIO) has expressed interest in joining forces with KoBold for this development.
