Name of the Project
Manono lithium/tin project.
Location
Democratic Republic of Congo (DRC).
Project Owner/s
AVZ Minerals recently raised $400-million in a transaction with Chinese investment firm CATH Energy Technologies, under which CATH would earn a 24% interest in a multifaceted joint venture (JV) to develop the Manono project.
AVZ’s interest will fall to 51%, from 75%, with DRC-owned Cominiere retaining a 25% stake.
Project Description
An independent assessment has shown that the Manono project could have one of the lowest carbon footprints of any global hard-rock lithium miner.
The project has total mineral resources of 400-million tonnes grading 1.65% lithium oxide, 715 parts per million tin, 0.96% iron oxide and 0.29% phosphorous pentoxide.
The definitive feasibility study (DFS) has shown the project to be robust and viable, and envisages conventional openpit mining producing about 700 000 t/y of high-grade lithium and 45 475 t/y of primary lithium sulphate over a 20-year mine life, based on a 4.5-million-tonne-a-year operation underpinned by the project’s ore reserves.
Primary lithium sulphate will be produced using 153 000 t/y of the spodumene concentrate product as feedstock.
The processing flowsheet allows for the recovery of tin and tantalum from hard-rock ore, as well as smaller amounts of alluvial tin and tantalum secured from local artisanal mineworkers.
Potential Job Creation
Construction is expected to create 400 to 450 jobs, with 500 to 550 jobs expected to be created in the long term.
Net Present Value/Internal Rate of Return
The project has a pretax net present value on a 100% basis, at a 10% discount rate, of $2.35-billion and an internal rate of return of 53.15%, with a payback of 1.5 years.
Capital Expenditure
Initial construction capital is estimated at $545.5-million, including a 10% contingency.
Planned Start/End Date
Production is expected to start in the first quarter of 2022, subject to Covid-19 regulations.
Latest Developments
AVZ Minerals has reached an agreement with private investment firm Suzhou CATH Energy Technologies for a $240-million investment in the Manono project.
The two companies struck a deal in September last year, under which CATH will earn a 24% equity interest in a multifaceted joint venture (JV) to develop the Manono project for a $240-million cash payment, and a further amount to fund its pro-rata portion of funding to develop the project.
The parties have now agreed to waive several of the conditions precedent, including the mining licence for the Manono project being granted to Dathcom Mining SA, the entry by Dathcom and the DRC government into the collaboration development agreement, and the Dathcom board and shareholders making a final investment decision and approving the transaction.
The proposed transaction is expected to be completed during March 2022, allowing for the start of the JV between AVZ and CATH that will focus on multiple aspects of the battery metals supply chain.
Meanwhile, AVZ Minerals announced a A$25-million investment in the early works and exploration drilling at its Manono lithium and tin project on February 10.
The capital investment will assist in maintaining the Manono project’s timetable, and will also fund an extension drilling programme at Roche Dure, with the potential to significantly expand the previously reported Joint Ore Reserves Committee-compliant mineral resource and ore reserves.
About A$19-million will be spent on the early works programme during the second half of the 2021/22 financial year, with funds allocated to upgrading the existing roads and bridges to assist with the transport of equipment to and from site, buying critical mobile equipment required for initial project development, progressing camp construction and entering key service contracts, and progressing various technical studies with respect to metallurgical testwork, downstream processing and infrastructure projects.
The remaining A$6-million has been approved for additional resource drilling at Roche Dure.
Key Contracts, Suppliers and Consultants
GR Engineering Services (process plant); PAIE (metallurgical testwork consultants); ALS (metallurgical testwork laboratories); Coppern (high-pressure grinding rolls original-equipment manufacturer); Steinhart (ore sorting original-equipment manufacturer); Middindi Consultants (geotechnical study); RD Consultants (hydrogeology and hydrology); CSA Global (resources-to-reserves study and mine development); ERM (mine closure plan); CONSI (operational readiness); L&MGSPL (tailings storage facility); Dynamic IT (information technology systems); Infraology (technical rail due diligence); Roskill (marketing survey); Graeme Campbell and Associates (geoscience); EmiAfrica (economic- and social-impact assessment); FTI Consulting (financial modelling); KCS Mining (mine contractor costing); Increva (project management consultants); Nexus Bonum (ore sorting consultants); iSpatial (geographic information system mapping); and Wisedesign (hydroelectric power plant DFS).
Contact Details for Project Information
AVZ Minerals, tel + 61 8 6117 9397 or email admin@avzminerals.com.au.