AVZ’s interest in the project in the Democratic Republic of Congo could fall from 75% to 36%,after its planned sale of 24%, as well as lawsuits from Chinese investors who claim ownership over the mine. According to Boatman Capital’s analysis, “At best, AVZ faces months or years of legal fights” to block a claim by a Zijin subsidiary. At worst, AVZ will lose control of Manono.”
AVZ said Friday it has extended a voluntary suspension of trading on the ASX until June 1, after a halt that began on May 9 while waiting for the Congolese government to complete permit approvals. AVZ has soared more than 400% over 12 months.
Congo is a vital source of cobalt lithium, both essential to the manufacture of electric-vehicle batteries. Chinese companies now control about 50% of cobalt output and approximately 70% of copper production in Congo.
Read: China Built Congo Toll Road That Led Straight to Ruling Family
In China, lithium prices have more than quadrupled over the past year, only settling recently as COVID restrictions slowed production.
