AVZ Minerals
| Company type | Public |
|---|---|
| Formerly ASX-listed | |
| Industry | Mining exploration |
| Founded | Australia |
| Products | Lithium |
| Website | avzminerals.com.au |
AVZ Minerals Limited is an Australian mining exploration company primarily involved in lithium mining projects, most notably the Manono-Kitolo lithium project located in the Democratic Republic of the Congo (DRC). The company has faced regulatory complications and protracted legal disputes.
History
[edit]AVZ Minerals was established with a focus on exploring and developing mineral resources, predominantly lithium, essential for battery production in the electric vehicle industry. The company gained significant investor attention when it began developing the Manono lithium-tin project, touted as one of the largest lithium spodumene hard-rock deposits globally.[1]
As of March 2025, AVZ Minerals continues to engage in multiple legal proceedings, including international arbitration against Cominière and ongoing court actions within the DRC.[2] AVZ obtained an ICC arbitration ruling ordering Cominière to pay penalties for failure to follow an injunction on construction activities. The overarching dispute regarding control and rights over the Manono lithium project remains unresolved.[3]
Manono Project and Controversies
[edit]AVZ initially claimed to hold a 75% stake in the Manono lithium project, in a joint venture with the state-owned Congolaise d'Exploitation Minière (Cominière). The project attracted international interest, including an agreement with Chinese battery manufacturer CATL, which intended to invest $240 million for a 24% stake.[4]
However, significant issues arose following AVZ’s disputed attempts to consolidate ownership. In August 2021, AVZ’s acquisition of an additional 15% stake from Dathomir Mining was legally challenged and subsequently invalidated by Congolese courts, reverting AVZ’s effective stake to 60%. This legal defeat raised early concerns over the company's due diligence and corporate governance. Further complications arose after AVZ contested Cominière’s sale of a 15% stake in the project to China's Zijin Mining in late 2021. AVZ repeatedly challenged the sale in Congolese courts but failed to overturn the decision, leading to prolonged legal conflicts and operational uncertainty. These legal battles significantly delayed the project's development timeline, ultimately prompting the Congolese government to revoke AVZ's mining license in February 2023.[5]
Shareholder Lawsuit
[edit]AVZ Minerals' challenges deepened when the company faced shareholder backlash due to its prolonged suspension from trading on the Australian Securities Exchange (ASX). After being suspended in May 2022 amid ownership uncertainty and ongoing litigation, AVZ was ultimately delisted from the ASX in May 2024. The delisting left approximately 21,000 shareholders without liquidity.[6]
The company became the subject of a shareholder class action lawsuit, funded by litigation financier Omni Bridgeway. The lawsuit alleges that AVZ failed to adequately disclose risks and material information regarding ownership disputes and legal vulnerabilities surrounding the Manono project, causing financial losses to investors.[7]
References
[edit]- ^ "Chinese mining giant in secret Africa lithium grab". Australian Financial Review. 2023-02-17. Retrieved 2023-05-04.
- ^ "Australia's AVZ Minerals scores legal victory against Congo over disputed lithium". Reuters. 2025-03-14. Retrieved 2025-04-25.
- ^ "AVZ flags delisting; shareholders face $2.8 billion wealth wipeout". Australian Financial Review. 2024-05-01. Retrieved 2025-04-25.
- ^ "Lithium Bonanza: China Battles West for Raw Material of the Future". Der Spiegel. 2023-02-09. Retrieved 2023-03-03.
- ^ "Chinese miner Zijin locks horns with Australia's AVZ". South China Morning Post. 2022-05-10. Retrieved 2023-05-04.
- ^ "AVZ flags delisting; shareholders face $2.8 billion wealth wipeout". Australian Financial Review. 2024-05-01. Retrieved 2025-04-25.
- ^ "Omni Bridgeway to Fund AVZ Minerals Limited Shareholder Class Action". Litigation Finance Insider. Retrieved 2025-04-25.