AVZ Minerals is resuming legal action against the DRC over revoked rights to the Manono lithium project after failed settlement efforts. The dispute, now returning to ICSID arbitration, impacts KoBold Metals’ acquisition interests and highlights geopolitical tensions around lithium resources crucial to global clean energy and battery supply chains.
Australian mining company AVZ Minerals has announced it will resume international legal proceedings against the Democratic Republic of Congo (DRC) following a failed attempt to resolve a dispute regarding rights to the Manono lithium deposit. AVZ had initially paused its arbitration efforts in hopes of reaching a negotiated settlement, but stated this week that no meaningful engagement occurred from the DRC’s side, prompting the company to continue its legal challenge.
The dispute centers around AVZ’s claim to one of the world's largest undeveloped hard rock lithium deposits located in Manono, in the southeastern region of the DRC. Lithium is a critical mineral in the global energy transition, used extensively in electric vehicle batteries and renewable energy storage systems. AVZ originally secured a permit to develop the Manono project and had been progressing development activities, but in 2023, the DRC Ministry of Mines revoked the company’s permit, citing slow progress on the ground. The mining rights were subsequently reassigned to a unit of China’s Zijin Mining Group.
In response to what it sees as an unlawful expropriation, AVZ initiated legal action through two international tribunals: the International Court of Arbitration under the International Chamber of Commerce, and the International Centre for Settlement of Investment Disputes (ICSID), a body affiliated with the World Bank. AVZ's legal claim seeks to restore its rights and recover losses stemming from the permit’s cancellation.
The dispute has gained international attention due to the strategic importance of lithium and the growing competition among nations and companies for access to critical minerals. The United States government has taken a particular interest in resolving the standoff and has encouraged both parties to seek a diplomatic solution. In light of this, AVZ suspended its ICSID arbitration proceedings in May 2025 to allow time for potential dialogue. However, the company has now stated that the DRC failed to engage during this window, and as a result, the suspension has lapsed. AVZ confirmed that it will now move forward with the arbitration process through ICSID.
The ongoing conflict poses a serious challenge for KoBold Metals, a U.S.-based metals exploration company backed by prominent investors such as Bill Gates. KoBold has expressed interest in acquiring AVZ’s stake in the Manono project. However, the uncertainty surrounding ownership rights presents a major hurdle to any such transaction.
AVZ’s shares were suspended from trading in May 2022 and eventually delisted due to the prolonged legal uncertainty. Despite this, the company remains committed to reclaiming its stake in the Manono project, viewing it as a key asset in the future of clean energy supply chains.
