KoBold Metals Co., supported by Bill Gates and Jeff Bezos, is pursuing development of a major lithium deposit in the DRC, marking a significant U.S. mining interest in the region. Their proposal also aims to address disputes involving AVZ Minerals and Zijin Mining while seeking a joint venture with the DRC government as a minority investor.
KoBold Metals Co., supported by billionaires Bill Gates and Jeff Bezos, has expressed interest in developing one of the largest hard rock lithium deposits in the Democratic Republic of Congo (DRC). This represents the first significant proposal by a major U.S. mining firm to invest in the DRC, coinciding with ongoing discussions about establishing a minerals and security partnership between the two nations.
The company has put forth a proposal to acquire a valuable mining license and aims to mediate a prolonged dispute involving AVZ Minerals Ltd., Zijin Mining Group Co., and the DRC government. This conflict has previously hindered investment in the Roche Dure resource, which has potential to be a significant battery metal producer.
In a correspondence to President Felix Tshisekedi’s chief of staff, KoBold’s Chief Legal Officer Sandy Alexander detailed the immense potential of the deposit to evolve into a major lithium mine. The letter emphasized KoBold’s intention to take on the development of this essential asset as they plan to expand their ventures globally, including the Mingomba copper mine in Zambia.
The proposal from KoBold emerged shortly before Tshisekedi introduced a minerals-for-security initiative to the Trump administration during the DRC’s ongoing struggle against a Rwanda-backed rebellion in its eastern provinces. Furthermore, Zijin plans to initiate Congo’s first lithium mine by 2026 in proximity to the area being targeted by KoBold.
Although lithium prices have plummeted more than 80% from their 2022 peaks, Chinese companies are significantly increasing production across Africa to secure resources in anticipation of future demand. The dispute over the Roche Dure project saw AVZ close to initiating operations until the DRC government revoked its rights and split the permit, granting part of it to Zijin. Resolving this dispute through KoBold’s proposal might unlock one of the richest lithium sources, pivotal for electric vehicle batteries.
To implement the agreement, AVZ would need to receive suitable compensation and relinquish its interests in Congo. Following resolution of all conflicts, the northern section would be developed by Zijin, while KoBold would handle the southern area. Additionally, KoBold requested that the DRC government be a minority shareholder in any joint venture as opposed to the state-owned Cominiere, previously partnered with AVZ.
While KoBold declined to comment extensively, it verified the dispatch of its proposal to Tshisekedi’s chief of staff. Meanwhile, AVZ and the DRC government did not provide comments regarding the matter, and any consolidation of KoBold’s interests will necessitate addressing an existing arrangement between AVZ and China’s Suzhou CATH Energy Technologies, which funds AVZ amid arbitration processes.
Michael Bloomberg, majority owner of Bloomberg LP, is known to invest in Gates’ Breakthrough Energy, which holds shares in KoBold according to its official site.
KoBold Metals Co. aims to develop a significant lithium deposit in the Democratic Republic of Congo, marking the first major U.S. mining investment in the region. Their proposal seeks to mediate ongoing disputes, highlighting the strategic importance of lithium for future energy markets. As both KoBold and Zijin plan mining operations, the resolution of current conflicts is critical to unlocking the deposit’s potential.
Original Source: financialpost.com
