Partial Award to Enforce Emergency Orders and Liquidate Accrued Penalty
AVZ Minerals Limited confirms that the ICC tribunal, in case ICC No. 27720/SP, has issued a Partial Award dated 10 March 2025. The tribunal has ruled that La Congolaise d’Exploitation Minière (Cominière) must pay a penalty of €39,125,000 plus interest, at the French legal interest rate, due to its non-compliance with emergency orders.
The ruling follows arbitration initiated by AVZ International Pty Ltd (AVZI) against Cominière over alleged breaches of and the purported termination of the Dathcom joint venture agreement (Dathcom JVA). AVZI previously secured emergency injunctions from the ICC’s Emergency Arbitrator on 5 May and 15 November 2023, prohibiting Cominière from taking actions based on its purported termination of the Dathcom JVA.
Figure 1: AVZ Minerals Secures €39 Million Tribunal Ruling Against Cominière
The penalty accumulated at €50,000 per day as a result of Cominière’s failure to comply with these emergency orders.
Tribunal Findings on Cominière’s Non-Compliance
The ICC tribunal determined that Cominière violated the emergency orders by:
- Obtaining an extension of mining permit PR 13359 in its own name from Cadastre Minier de la RDC (CAMI).
- Securing approval for the split of PR 13359.
- Assigning PR 15775 to Manono Lithium SAS, a joint venture between Cominière and a subsidiary of Zijin Mining Group Limited.
AVZI applied for an order seeking liquidation of the accrued penalties for non-compliance with the emergency orders. The tribunal has now ruled in favour of AVZI and has rejected Cominière’s application to set aside the emergency orders.
The tribunal also reaffirmed the injunctions issued on 5 May 2023 and 15 November 2023 and reserved its decision on any further penalties that may arise from Cominière’s continued non-compliance, including activities carried out by Manono Lithium SAS on PR 15775.
AVZ’s Next Steps
AVZ is evaluating its legal options regarding the recovery of the €39.1 million penalty imposed on Cominière. The Company has reaffirmed its commitment to pursuing all available avenues to ensure compliance with the tribunal’s orders and safeguard its interests in the project.
A copy of the tribunal’s decision, along with an unverified English translation, will be made available on AVZ’s website for transparency and reference. The Company will continue to update shareholders and stakeholders as developments unfold.
Partial Award on Dathomir’s Joinder in Parallel Proceedings
In a separate arbitration (ICC No. 27769/SP), Cominière and Jin Cheng Mining Company (Jin Cheng), a subsidiary of Zijin Mining Group Limited, initiated proceedings against AVZI concerning alleged breaches of the Dathcom JVA.
The ICC tribunal has now ruled on a petition from Dathomir Mining Resources SARLU (Dathomir) to be joined as a party to the proceedings. The Partial Award, dated 10 March 2025, dismissed AVZI’s challenge to Dathomir’s request for joinder.
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The parties are currently exchanging submissions regarding the scheduling of the arbitration process.
Response to Media Speculation
AVZ refers to recent media reports, including an article published by The Australian on 12 March 2025 titled “Trump challenge lifts the hopes of a great escape for troubled lithium company AVZ.”
The Company confirms that:
- This representatives recently visited the United States to explore funding opportunities for the Manono Lithium Project.
- During this visit, AVZ met with several parties who expressed interest in the project.
These discussions remain at a preliminary stage. It has not received any formal investment proposals, and there is no certainty that any proposal will materialise.
It will continue to update shareholders in accordance with its continuous disclosure obligations.
This announcement was authorised for release by the Board of Directors of AVZ Minerals Limited.
The Significance of the Manono Lithium Project
Figure 2: The Manono Lithium Project
The Manono Lithium Project, located in the DRC, is a globally significant lithium deposit, critical for the production of lithium-ion batteries used in electric vehicles and renewable energy storage. The project’s development has faced legal challenges, but it remains committed to securing its position and advancing towards production.
Despite ongoing disputes, the Company continues to engage with industry stakeholders, investors, and regulatory bodies to ensure the project’s progress.
For further updates, stay tuned in at COLITCO.
