Resource Matters has expressed concern over the dangerous trend of corruption in lithium mining in the Democratic Republic of the Congo (DRC). In a document titled "Red Flag", the non-governmental organization outlined the intense competition among companies for lithium mining rights in Manono, located in the southeastern Tanganyika province of DRC. Manono boasts one of the world's largest untapped hard rock lithium deposits.
In fact, the mining of the Manono lithium mine is not only of great significance to enterprises, but also holds tremendous development opportunities for local communities. Congo (Kinshasa) is expected to benefit from this extremely rich mineral deposit, as lithium is a highly sought-after mineral globally.
However, obtaining and maintaining exploration licenses has become exceptionally difficult. Obtaining mining licenses is even more challenging. The history of this lithium mine is filled with frequent changes in joint venture ownership, raising suspicions of corruption and leading to protracted legal disputes among investors. Unknown market practices continue to fuel conflicts among the nine companies in Manono over lithium mining.
This is the case with Dathcom Mining, for example. The company was originally established by Cominière (holding 30% shares) and its partner Dathomir Mining (holding 70% shares) to explore and mine lithium deposits within the license area No. 13359 located in the Manono-Kitotolo deposit. Later, AVZ Minerals (at the end of 2016) and Jinxiang Lithium (a subsidiary of Zijin Group) joined the joint venture in 2021. In 2023, due to disagreements between the controlling shareholder AVZ and the state-owned enterprise Cominière, Cominière unilaterally dissolved Dathcom Mining.
Currently, the dispute between Cominière and the Australian company AVZ is undergoing international arbitration. AVZ lost its mining license in 2023, which belongs to the state-owned enterprise Cominière. According to the mining register, Cominière remains the sole owner of the deposit. However, AVZ has strongly contested this decision by the government of the Democratic Republic of the Congo. It is against this backdrop that AVZ filed a lawsuit with the International Chamber of Commerce, which recently ruled against the Democratic Republic of the Congo.
Despite the ongoing dispute between Cominière and AVZ, the peace agreement brokered by the United States between Rwanda and the Democratic Republic of the Congo has entangled the American company, KoBold metals, in the conflict.
Resource Matters pointed out that laws and procedures were disregarded, which benefited companies with close political ties. The non-governmental organization also condemned practices such as the resulting lack of fair competition, the use of shell companies to transfer funds and make them untraceable, and the involvement of middlemen with close ties to political elites. These practices benefited individuals but harmed the interests of local communities.
"This well-known situation has already caused serious damage to the country. Ignoring the increasing signs of opacity and corruption is tantamount to repeating past mistakes and once again destroying the cobalt and copper industries in the Democratic Republic of the Congo," the resource affairs organization stated.
In addition, Resource Affairs also warns that the state-owned company Cominière is the root cause of these conflicts. Cominière has successively established and dissolved multiple joint ventures. MMCS is one such example, which was later replaced by Dathomir and AVZ, and then by Zijin.
The Democratic Republic of the Congo (DRC) may once again emerge as a leader in the globally crucial mining market, given that lithium is an essential ingredient for battery manufacturing. With the rise of rechargeable vehicles, the DRC is striving to position itself as a key player in the energy transition.
