US confirms its critical minerals agenda as fallen miner AVZ chases an improbable African prize
The Trump administration is set to intervene on behalf of AVZ to ensure the lion’s share of the Manono lithium project stays out of Chinese hands.
The US wants to boost “responsible and transparent” development of critical minerals assets in the Democratic Republic of Congo, where a stricken Australian explorer, AVZ Minerals, has fought to regain control of a lithium deposit it claims was unlawfully seized by a Chinese company.
The Trump administration is set to intervene on behalf of AVZ to ensure the lion’s share of the Manono lithium project stays out of Chinese hands, The Australian revealed on Wednesday, and may also wade into a separate dispute over copper and cobalt mines owned by Chemaf Resources.
The White House is open to striking a critical minerals pact with the DRC in return for security in a move that risks antagonising China, given the extent of its interests in the resource-rich central African economy.
DRC president Felix Tshisekedi hopes to broker a deal with the US to resolve a conflict with Rwandan-backed M23 rebels.
In response to questions from The Australian, the US State Department acknowledged the DRC was endowed with a big share of the world’s critical minerals required for advanced technologies in defence and electrification.
“The US is open to discussing partnerships in this sector that are aligned with the Trump administration’s America First Agenda under the Unleashing American Energy executive order,” a State Department spokesman said.
“The US has and continues to work with our DRC partners to boost US private sector investment in the DRC to develop mining resources in a responsible and transparent manner that contributes to the strength and prosperity of both the DRC and the US.
“Partnerships with US companies will strengthen both US and DRC economies, create higher-skilled jobs and integrate the country into regional and global value chains.”
The US is likely to insist that at least the southern part of the disputed Manono project is returned to AVZ on the understanding the embattled company will then sell the asset to a US entity.
Any US intervention is geopolitically sensitive given one of China’s biggest miners, Zijin, is developing the project and on track for first production of lithium early next year.
US authorities consider Zijin a state-controlled company and are understood to favour allowing it to keep control of the northern part of Manono in an attempt to minimise the backlash from China.
AVZ maintains it has legal rights to all of Manono even though the DRC has split the licence and Zijin has forged ahead in the north. The Australian company is pursuing its claim before the International Court of Arbitration and the International Centre for Settlement of Investment Disputes, but previous rulings in its favour have been ignored.
Meanwhile, Australian Federal Police raided the company’s offices in December investigating alleged bribery, which AVZ denies.
The White House wants any sale of the Manono asset to not be complicated by AVZ’s residual links to China’s CATL, the world’s biggest electric vehicle battery manufacturer, which in January provided $US20m in funding to AVZ.
AVZ was delisted from the ASX in 2024 after its shares were suspended in May 2022.
In the same month, the US effectively blackballed CATL when the Department of the Defence designated it as a “Chinese military company”. CATL is fighting this declaration and denies ever engaging in any military-related business or activities.
AVZ was once valued at $4.6bn but has no listed presence after it lost control of what it touted as the world’s biggest lithium deposit. It had 21,000 shareholders.
The US may also intercede in the future of DRC company Chemaf, to stop China’s Norinco extending its interests in copper and cobalt mines. DRC state-owned miner Gecamines has offered to buy Chemaf to stop Norinco. Norinco already owns the Comika and Lamikal mines in the DRC in partnership with Gecamines, but has been sanctioned by the US since 2021.
DRC businessman and physicist Jean Bele said his home country was walking a tightrope between two superpowers but needed to get maximum value from its critical minerals assets.
Mr Bele said he expected US investment in bring higher standards and greater benefits to the economy, and criticised the actions of Chinese miners.
“US investment require the respect of the environment, of human rights, and the many other things. Chinese investment is not doing that now,” he said. “US investment will help to make sure that good people come to the country and respect the country’s law.
“Chinese, sometimes they are coming here and they just don’t care about the legislation. They just come and they try to bribe people to get whatever they need. That’s not good.”
Asked if the DRC could balance competing US and Chinese interests in critical minerals, Mr Bele – regarded as an unofficial adviser to the government – said it didn’t have a choice. “It is a very tricky situation,” he said.
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