KoBold Metals, backed by Gates and Bezos, has offered to develop a major lithium deposit in Congo. This proposal is part of early discussions for a minerals and security partnership with the U.S. government. The company seeks to resolve disputes involving AVZ and Zijin to unlock vast lithium resources, crucial for electric vehicles.
KoBold Metals Co., supported by billionaires Bill Gates and Jeff Bezos, has approached the Democratic Republic of Congo for developing a significant hard rock lithium deposit. This marks the first significant investment proposal from a large U.S. mining company as discussions about a minerals and security partnership between the U.S. and Congo are underway.
The company has proposed acquiring an essential mining license, addressing ongoing disputes involving Australia’s AVZ Minerals Ltd. and China’s Zijin Mining Group. These conflicts have delayed investment within the Roche Dure resource, which has considerable potential to become a major source of lithium for battery production.
“The deposit has the potential to become a large-scale, long-lived lithium mine,” stated KoBold Chief Legal Officer Sandy Alexander in a letter to President Felix Tshisekedi’s chief of staff. KoBold operates more than 70 exploration projects globally and is also developing the Mingomba copper mine in Zambia.
The proposal by KoBold coincided with Tshisekedi’s suggestion of a minerals-for-security agreement with the U.S. government, amidst unrest in the eastern provinces backed by Rwanda. Meanwhile, Zijin aims to establish Congo’s first lithium mine by 2026, signaling increased competition in the region as lithium prices decrease.
KoBold’s offer seeks to resolve the ongoing arbitration cases that arose after Congo revoked AVZ’s rights to the project in 2023, further splitting the permit. Their plan requires AVZ to receive adequate compensation and agree to transfer its interests in the region, allowing KoBold to develop the southern section of the deposit while Zijin maintains the northern part.
Additionally, KoBold has requested that the Congolese government act as a minority shareholder in any future joint venture rather than the previously involved state-owned Cominiere. The complexities of the existing agreements, including one between AVZ and China’s Suzhou CATH Energy Technologies, will also need to be addressed prior to any potential acquisition by KoBold.
Although KoBold declined to provide further comments on their proposal, they confirmed the letter’s dispatch. AVZ chose not to comment, while Zijin and Tshisekedi’s chief of staff did not respond to queries about the situation.
KoBold Metals is making significant strides in establishing a partnership with the Democratic Republic of Congo to develop a vast lithium deposit, which is vital for the energy transition. The resolution of existing disputes and the potential restructuring of claims related to AVZ and Zijin could pave the way for an enhanced investment landscape in Congo’s mining sector. Furthermore, the proposal aligns with broader U.S.-Congo cooperation amid regional security challenges and the international demand for lithium.
Original Source: financialpost.com
