KoBold Metals, backed by Bill Gates and Jeff Bezos, seeks to develop a vast lithium deposit in the Democratic Republic of Congo, amidst disputes with AVZ Minerals and Zijin Mining. Their proposal aims to resolve ongoing arbitration and facilitate a minerals-for-security partnership with the U.S. government.
KoBold Metals Co., supported by notable billionaires Bill Gates and Jeff Bezos, has expressed interest in the Democratic Republic of Congo’s substantial hard rock lithium deposits. This marks a significant offer from a large U.S. mining firm as part of nascent discussions for a potential minerals and security collaboration with the Congolese government.
The firm is seeking to acquire a coveted mining license while aiming to mediate an ongoing dispute involving Australia’s AVZ Minerals, China’s Zijin Mining Group, and the government. The dispute has delayed investment in the Roche Dure resource, which is poised to be a leading source of battery metal production.
In a correspondence addressed to President Felix Tshisekedi’s chief of staff, KoBold’s Chief Legal Officer Sandy Alexander highlighted the deposit’s potential to evolve into a large-scale lithium mining operation. The company currently manages over 70 exploration projects globally, including the Mingomba copper mine in Zambia.
The proposal coincided with Tshisekedi’s initiative to forge a minerals-for-security arrangement with the U.S. amid challenges associated with a Rwanda-backed insurgency in eastern Congo. Meanwhile, Zijin plans to commence operations at Congo’s first lithium mine by early 2026, near the area of KoBold’s interest, despite lithium prices dropping significantly over the past year.
AVZ was nearing project initiation when the Congolese government rescinded its rights in 2023, reallocating part of the permit to Zijin. KoBold’s proposal aims to resolve multiple arbitration processes stemming from this action, which could unlock a rich source of lithium essential for electric vehicle batteries. Notably, AVZ is currently pursuing the full restoration of its exploration license.
KoBold stated that for its plan to proceed, AVZ must receive appropriate compensation and agree to transfer its interests in the region. Should negotiations succeed, Zijin would retain rights to the northern section while KoBold would focus on the southern area. Additionally, KoBold suggested that the Congolese government act as a minority stakeholder in any joint venture, differing from prior arrangements with AVZ’s partner Cominiere.
KoBold has confirmed sending their proposal and is awaiting responses. Any acquisition efforts would need to consider an existing agreement AVZ has with China’s Suzhou CATH Energy Technologies, which is providing financial support during ongoing arbitration.
In summary, KoBold Metals is making significant strides in pursuing development opportunities in the Democratic Republic of Congo’s lithium sector. Their approach includes addressing existing disputes and collaborating with local government to ensure the stability of investments. With major stakeholders on board, such as Bill Gates and Jeff Bezos, this initiative could reshape the landscape for lithium extraction, crucial for the electric vehicle industry.
Original Source: financialpost.com
